Finance, Forex and Investments

The European Union has created the European Central Bank?

The European Union has created the European Central Bank (ECB). Unlike the Federal Reserve, the ECB is not a lender of last resort. This means that if commercial banks fail to honor their deposits the ECB is not supposed to step in and help them with emergency credit. In your opinion is this a reliable institutional setting for a banking system? Why?

Public Comments

1. Yes it is a reliable setting for the other banking institutions of Europe. In staying out of the bail out business, the Central Bank become a lighthouse of sorts in a very stormy sea. Here at home, the Fed Reserve is just a soup kitchen.