Global central banks take action to prevent EU credit crunch

The Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the Federal Reserve and the Swiss National Bank announced on the 30 November 2011 coordinated actions to enhance their capacity to provide liquidity support to the global financial system. The purpose of these actions was to ease strains in financial markets and thereby mitigate the effects of such strains on the supply of credit to households and businesses and so help foster economic activity.

The immediate focus was rapidly rising concern about European banks’ dwindling access to US currency. The move would make it easier for banks everywhere to trade in US dollars, but it was European banks in particular that were in biggest need of the rescue.

• Primary Source

ESO: Background information: Desperate eurozone chiefs look to IMF http://www.europeansources.info/record/desperate-eurozone-chiefs-look-to-imf/

ECB: Press Release, 30.11.11: Coordinated central bank action 
to address pressures in global money markets http://www.ecb.int/press/pr/date/2011/html/pr111130.en.html

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