The Bank of England, US Federal Reserve, European Central Bank and Swiss National Bank have decided to take coordinated action to inject extra cash to banks in order to help banks as they approach towards the end of the financial third quarter.
A credit crunch has been created because banks are reluctant to lend money to other banks because of further bank failures. The news of the failure of one of the largest investment bank in the United States has increased apprehensions and deepened the crisis. I think that if emergency measures are required to control this situation a failure of more banks could have a spiraling effect on financial markets and many small bank may fall under the weight of big banks.
The Bank of England, US Federal Reserve, European Central Bank and Swiss National Bank have decided to take coordinated action to inject extra cash to banks in order to help banks as they approach towards the end of the financial third quarter.
A credit crunch has been created because banks are reluctant to lend money to other banks because of further bank failures. The news of the failure of one of the largest investment bank in the United States has increased apprehensions and deepened the crisis. I think that if emergency measures are required to control this situation a failure of more banks could have a spiraling effect on financial markets and many small bank may fall under the weight of big banks.
Related
