In recent years, the rapid growth of digital-only 'neobanks' has transformed the retail and commercial banking landscape. Consider a scenario where ApexFlow, a major digital retail bank holding over £40 billion in deposits from millions of individual consumers and technology startups, experiences a sudden, high-velocity bank run driven by panic on social media and rapid electronic withdrawals.
Evaluate the view that a central bank should always act as a lender of last resort to prevent the failure of systemically important retail or commercial banks.
