Publication
12 Oct 2008
How to revive the interbank market? The crisis has now become so acute that banks refuse to lend short even if they have the funding. In the eurozone, banks prefer to deposit surplus funds at the ECB’s low-yielding deposit facility rather than to on-lend to other banks. What is needed is a coordinated approach, as proposed by the UK – but taken at the euro area level.
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English (PDF, 2 pages, 49 KB) |
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Author | Daniel Gros, Stefano Micossi |
Series | CEPS Commentaries |
Publisher | Centre for European Policy Studies (CEPS) |
Copyright | © 2008 Centre for European Policy Studies (CEPS) |