A public-private partnership: central banks as a funding backstop

Created
Thu, 19/02/2026 - 20:00
Updated
Thu, 19/02/2026 - 20:00
Matthieu Chavaz, David Elliott and Win Monroe Large-scale provision of long-term funding to banks has become a central bank tool to support credit supply during downturns. However, scholars have worried that allowing banks to rely on public funding could create moral hazard and crowd out private funding. In a recent paper, we address these concerns … Continue reading A public-private partnership: central banks as a funding backstop