European Central Bank faced two challenges which tried to address with two different approaches to lender of last resort (LOLR) function. First, ECB had to deal with a system-wide liquidity shock of unprecedented magnitude. ECB resorted the “monetary approach” to LOLR. In this way, Central Bank sought to deter a contraction in the stock of bank-created money and to compensate for a decline in its velocity of circulation. Second, and in parallel, ECB kept intervening in support of particularly acute idiosyncratic liquidity strains faced by individual solvent credit institutions under the “credit approach” to LOLR, which is embedded in the Eurosystem’s emergency liquidity assistance (ELA) – a responsibility of the national central banks.