The global financial crisis has raised new challenges for central banks’ role as lender of last resort, especially in the case of a temporary liquidity crisis of a systemically important financial institution operating in multiple jurisdictions and currencies. Issues include how central banks should share information and how responsibilities should be allocated in such circumstances.
Moreover, it is also possible that different countries and jurisdictions treat banks and non-bank differently under their individual safety nets. The Bank of Japan actually has experience in some aspects of such cross-border challenges, since Yamaichi Securities, which failed in 1997 and to which the Bank provided liquidity, had overseas bank subsidiaries.