Five Central Banks Lend More
Published / Last Updated on 15/09/2011
Five Central Banks Lend More.
Five central banks have announced they will provide commercial banks with 3 additional loans to try to help the financial system.
The loans by the Federal Reserve, Bank of England, Bank of Japan, Swiss National Bank and European Central Bank follows fears about the exposure of banks, mainly those in Europe - to eurozone sovereign debt. This worry has resulted in European banks being reluctant to lend to each other, creating the risk of short-term funding problems.
The 3 additional three-month loan offers will be carried out in October, November and December.