Central banks act to help Europe lenders / ECB fires salvo at German critics

The world’s main central banks took bold concerted action on the 15 September 2011 to pre-empt a looming dollar funding crisis in Europe, sparking a rally in eurozone bank shares and the euro.

Five central banks including the European Central Bank, the Bank of England and Switzerland’s central bank said they would provide three-month dollar loans to banks from October 2011, which will cover the year-end period. The display of firepower was intended to prevent an escalation of financial market tensions and signal that authorities are prepared to take action to boost market confidence.

EUObserver, 16.9.11: Japan, Switzerland and US take steps to protect EU banks http://euobserver.com/19/113651

ESO: Background information: A cheer for ECB’s attempt at shock and awe http://www.europeansources.info/record/a-cheer-for-ecbs-attempt-at-shock-and-awe/

ECB: Press Release, 15.9.11: ECB announces additional US dollar liquidity-providing operations over year-end http://www.ecb.int/press/pr/date/2011/html/pr110915.en.html

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