The European Central Bank (ECB) has taken the unprecedented step of making a £250 million investment into the banking system. The 16-day loan, due to be repaid on January 4th, is designed to ease the pressure in the global credit market following the US sub-prime crisis. The tightened credit standards, combined with declining property values, have led to a belief that economies have yet to hit their lowest point.
As a result, demand has fallen, with the ECB’s injection of cash designed to revive demand to restore bank’s confidence. It isn’t just the ECB which are attempting to revive demand, but also the Bank of England and the U.S. Federal Reserve . The Bank of England is to offer additional reserves to lenders, whilst the U.S. Federal Reserve has already auctioned off $20 billion in 28-day credit.
ECB Pumps GBP250 Billion into Banks
ECB Pumps GBP250 Billion into Banks
Mon, 24 Dec 2007
Recommended links
The Essential Banking GuideDebt Solutions
Bad Credit Loan Lenders
Find a solicitor
Top Savings Accounts
Swiss Bank UBS Suffers USD10 Billion Hit
Virgin Named as Bank's Preferred Buyer
| Banking news |
|---|
| UBS to Make Banking Job Cuts - Wed, 07 May 2008 |
| Online Banking Increasingly Popular - Fri, 02 May 2008 |
| Britains Banks Lose Overdraft Charge Test Case - Mon, 28 Apr 2008 |
| More News |
