This paper develops a game theory model to analyze the optimal structure of the Lender of Last Resort in Europe. When depositors are imperfectly informed, the in-di¤erence to international transmission displayed by national authorities has value. A centralized authority is at a signalling disadvantage because it internalizes externalities: pooling equilibria arise in which depositors cannot disentangle its motivation to act. The optimum is achieved by delegation: the central authority decides when to retain control and when to delegate to the national authorities. However, when investment in bank supervision is endogenized, decentralization can dominate both centralization and delegation.