A lender of last resort (最后贷款人 zuìhòu dàikuǎn rén) refers to an institution, usually the central bank of a country, which lends money to commercial banks or other financial institutions that are experiencing serious financial difficulty and cannot borrow from anywhere else. In the U.S., The Federal Reserve Bank acts as the lender of last resort that provides loans to banks to prevent bankruptcy and stabilize the economy.
- Resort refers to the fact that you have to do something because there is no other way to solve the problem, and can be translated as (最后手段 zuìhòu shǒuduàn).
- 最 (zuì) refers to most, best, highest, or above all.
- 后 (hòu) as in backward (落后 luòhòu), offspring (后代 hòudài) or behind (后面 hòumiàn).
- 贷 (dài) as in credit (信贷 xìndài).
- 款 (kuǎn) as in payment (付款 fùkuǎn) or (款待 kuǎndài).
- 贷款 (dàikuǎn) as in industrial loans (工业贷款 gōngyè dàikuǎn).