Lender of last resort and bank closure policy. A post-crisis perspective

This chapter takes the reader from Bagehot doctrine of the lender of last resort to the the LOLR of the XXI century. The crisis that began in 2007 redefined the LOLR of the XXI century, first by placing it at the intersection of monetary policy, fiscal policy, supervision and regulation of the banking industry; second by giving regulatory authorities the additional responsibility of monitoring interbank markets; and third, by extedning its role to cover the possible bailout of non-bank insitutions.