Credit Crunch
Early in August 2007, the subprime crisis began to spread to sectors outside mortgage and real-estate finance. The ECB began distributing funds through a discount window or fine-tuning operation. By August 9, the ECB lent €95 billion ($112 billion in the days conversion) to EU banks, and the Fed distributed $12 billion through repo operations. Empirical results indicate that the Term Auction Facility had a strong effect in reducing financial strains in the inter-bank money market, primarily through relieving financial institutions' liquidity concerns.
Read more about this topic: Term Auction Facility
Famous quotes containing the word credit:
“There is nothing less to our credit than our neglect of the foreigner and his children, unless it be the arrogance most of us betray when we set out to “americanize” him.”
—Charles Horton Cooley (1864–1929)