If one of the components fails, the framework will subject to a negative effect.

In the first place, “the lender of last resort must intervene promptly and assure the availability of refinancing to prevent financial difficulties from turning into an interactive cumulative decline that could lead to a great depression.” Generally, the function of a lender of last resort is performed by the central bank of a jurisdiction. The central bank has to assure that it can fulfil the demands of the debtor who has a contract with it no matter how hard the market condition is. Although the central bank will suffer a huge capital pressure during that period, the function of the lender of last resort is able to guarantee that the value of the savings and make sure that the financial risk is not transfer to the depositor of a bank. Therefore, the venture of failure of the assets will be reduced firstly by the lender of last resort. 

In addition, the prudential regulation and supervisory framework