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:
“Especially with our first child, we tend to take too much responsibility—both credit and blame—for everything. The more we want to be good parents, the more we tend to see ourselves as making or breaking our children.”
—Polly Berrien Berends (20th century)