December 13, 2007

Banks get cheap money

There is a real move going on to revive the world banking industry, this is being coordinated by the US Federal Reserve and involves banks from the UK, Canada, Switzerland, USA and Europe. Where they will provide billions pounds worth of loans to banks that need it, but at very attractive rates of interest, the purpose of which is to ease off the pressure from the banks that are finding it hard.

There is a real worry about a recession looming and it hoped that these moves will support the finance industry on a worldwide scale and thus prevent this from occurring.

When there is a worldwide reshuffle like this it is a bit worrying, after all it was only a matter of a few months ago when the banks were refusing to lend money to each other, so what’s changed now?

Source [BBC News]