European central banks pony up more money

The Associated Press ,  Frankfurt   |  Fri, 09/19/2008 7:58 PM  |  Business

Europe's central banks offered up more cash to jittery banks on Friday, putting a combined US$90 billion into money markets in a lockstep move aimed at stemming a loss in confidence in the face of a withering global financial crisis.

The move is aimed at boosting shaky confidence and persuading fearful banks to lend to each other. Banks have been increasingly reluctant to lend to each other as distrust spread throughout the financial system.

The European Central Bank, which oversees the 15-nation euro zone, said it offered US$40 billion in the three-day tender with 64 banks bidding US$96.7 billion. That compared to the US$100 billion that banks bid for on Thursday.

In London, the Bank of England said it provided US$40 billion, as well.

The Swiss National Bank said it received bids worth US$21.1 billion from banks seeking access to the US$10 billion it provided.

Earlier, the Bank of Japan pumped another 2 trillion yen (US$18.7 billion) into money markets, its seventh injection this week.

The move came a day after the U.S. Federal Reserve plowed as much as US$180 billion into money markets abroad and the New York Federal Reserve's action to ease a spike in overnight lending rates by injecting US$55 billion into the banking system.

On Thursday, the Fed authorized new swap facilities with the Bank of Japan for as much as US$60 billion; US$40 billion for the Bank of England and US$10 billion for the Bank of Canada. All told, Fed action increased lines of cash to central banks by US$180 billion to US$247 billion.
 
Comments (0)  |   Post comment
A  |   A  |   A  |   Mail to a friend  |  Printer Friendly Version |  Digg it!  |  Add to Del.icio.us!  |  Add to Reddit!  |  Stumble it!

What's On

more
more
Not available.