<p>One of the usual functions of a Central Bank is to be the last resort of commercial banks, and governments. </p>

<p>Does the ECB behave in this usual way toward European Governments? What about toward banks? Is the banking union related to this?</p>

<p>Any help would be appreciated.</p>

CC BY-SA 3.0
2016-03-12T23:18:05.590Z
In a way, it does, but it shouldn't. Legally they aren't allowed to. Practically, they have to as a Lender of Last Resort is very necessary and only the ECB really has the power to perform this role in the Euro-area. They kind of do in reality and managed to find some legal loopholes to do so, but are getting sued about it.
BB King
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2016-03-13T21:19:28.133Z
@BBKing getting sued? By who?
An old man in the sea.
CC BY-SA 3.0
2016-03-14T00:01:49.123Z
Sorry, I meant to say there were threats to sue the ECB. Many german legal scholars for example. However, the European Court of Justice and the German Supreme Court pretty much dismissed them. Although, I'm not sure this is the end of it yet. Some more information here: http://www.dw.com/en/who-can-sue-the-ecb-and-how/a-16227848
BB King
<macroeconomics><banking><central-banking>
Is the ECB a lender of last resort for european governments?
An old man in the sea.
# Is the ECB a lender of last resort for european governments?

(Asked by: username_0 on 2015-12-11)

One of the usual functions of a Central Bank is to be the last resort of commercial banks, and governments.

Does the ECB behave in this usual way toward European Governments? What about toward banks? Is the banking union related to this?

Any help would be appreciated.

**Tags:** macroeconomics, banking, central-banking

> **Comments:**
> **username_1**: In a way, it does, but it shouldn't. Legally they aren't allowed to. Practically, they have to as a Lender of Last Resort is very necessary and only the ECB really has the power to perform this role in the Euro-area. They kind of do in reality and managed to find some legal loopholes to do so, but are getting sued about it.  
> **username_0**: @BBKing getting sued? By who?  
> **username_1**: Sorry, I meant to say there were threats to sue the ECB. Many german legal scholars for example. However, the European Court of Justice and the German Supreme Court pretty much dismissed them. Although, I'm not sure this is the end of it yet. Some more information here: http://www.dw.com/en/who-can-sue-the-ecb-and-how/a-16227848  

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## 0 answers

