Liquidity and Borrowing from a Lender of Last Resort during the Crisis of 1884


  • Christopher Hoag Trinity College



banking crisis, lender of last resort, clearinghouse loan certificate


This paper investigates the relation between bank liquidity and borrowing from a lender of last resort on a high frequency basis during a financial crisis.  The paper evaluates weekly observations of individual bank borrowing of clearinghouse loan certificates by a panel of New York Clearing House member banks during the crisis of 1884.  Naturally, banks with higher reserve ratios borrowed lower amounts, but banks replaced a dollar of reserves with less than a dollar of borrowing from a lender of last resort.


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How to Cite

Hoag, C. (2024). Liquidity and Borrowing from a Lender of Last Resort during the Crisis of 1884. International Journal of Finance & Banking Studies (2147-4486), 12(4), 01–13.