When the central bank lends to financial institutions in the midst of a liquidity crisis, the central bank is acting as a:

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When a central bank lends to financial institutions in times of financial instability, it is acting as a lender of last resort. This means that it provides a source of liquidity to help prevent financial institutions from failing due to a lack of funding. Shadow banks are non-bank financial institutions that operate outside of traditional banking regulations. Investment banks specialize in helping companies raise capital and providing advice on financial transactions. Mutual funds are investment vehicles that pool money from investors to purchase securities.

When the Central Bank Lends to Financial Institutions in the Midst