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:
“Laws remain in credit not because they are just, but because they are laws. That is the mystic foundation of their authority; they have no other.”
—Michel de Montaigne (15331592)