When the central bank acts as a lender of last resort, it:

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When the central bank acts as a lender of last resort, it typically requires the borrower to put up collateral in order to secure the loan. This collateral could include assets such as government bonds or other high-quality securities. This helps to mitigate the risk of default on the loan and helps to ensure that the borrower is able to repay the loan in full. Confiscating assets or taking over ownership is not typically part of the lender of last resort role. Voting rights on the borrower's board of directors may be required in some cases as a condition of the loan or as part of ongoing monitoring of the borrower, but this is not a universal requirement.

When the Central Bank Acts as a Lender of Last