However central banks have not spared their sentence

Earmarked lost Because they could refinance markets, banks received almost 1,700 billion euros of loans to the European Central Bank (ECB) and facilities of tens of billions of public aid for the loan (26.5 billion for the French banks between hybrid securities and loans for the financing of the French economy society). These support have allowed a few weeks ago a few large European banks to refinance is only on the market: Credit Switzerland, Société Générale and BNP Paribas including were issued between 850 million and EUR 1.5 billion.

The prices are reasonable

But relaxation is shy and a few other banks who went to refinance on their own behalf had to settle for much smaller tickets. Credit Agricole is limited to 250 million pounds and the Crédit Mutuel placed 500 million euros from its network. "The bond market began to thaw and, for our purposes of refinancing in 2009, it was essential to demonstrate our ability to get out on the market." "Next year the financing of the French economy (SFEF) company will not issue hundreds of billions of euros", afraid of a Chief Financial Officer of a bank.

The prices are reasonable. BNP Paribas, which was issued in April to 55 basis points over the mid-swap (2 years), had to carry out 160 (in 5 years) and Société Générale, for maturity to 5-year, 185 instead of 130 in March and around 30 basis points 18 months previously. Thus, it will be difficult for some institutions to escape aid SFEF, their own around 60 basis points and provides a window of refinancing in the long term. Because the segment of the refinancing of 5 to 10 years and low-cost housing credits, collateralized debt obligations is always closed them.

However, central banks have not spared their sentence. They lowered their interest rates repeatedly to reduce the cost of refinancing of the financial institutions and revive the credit. The European Central Bank has reduced the rent money from 4.25 to 2.50. The US Federal Reserve went up to adopt a policy of zero rates. They have also modified their procedures for the granting of liquidity. Banks who appeal to the European Central Bank do not need to bid and can borrow up to six months the amounts they desire, without limits.

Counterproductive measures

Another revolution, the ECB has expanded the list of assets that it accepts as collateral, up to take securities of rated debt BBB the risk of deterioration in its balance sheet. Through agreements with the Federal Reserve, it has also developed ample liquidity in dollars available to the market. Thus, at the height of the storm, the European Central Bank has injected up to 840 billion in a week.

Certain measures have proved counterproductive and have been corrected. The ECB had initially increased the compensation available to banks for their deposits on day the day. But financial institutions benefited to store cash they used instead of the move. At the time, January 21, the premium will be reviewed downward.

Despite a clear relaxation of interbank rates $ 3 months Libor fell 335 points to 1.46 and Euribor of 240 points, 2.9 , tensions have been slow to be calm. The gap between the rate at which banks lend and the rate, true barometer of tensions, is tightened only recently. The situation is not yet standardized.