Global Financial System Committee: functioning and resilience of cross-border funding markets
25 March 2010
The study analyses the pre-crisis pattern of cross-border funding among internationally active financial institutions. It also reviews what happened in various funding markets as the crisis unfolded and the policy responses that ensued, and distils five policy lessons from the experience.
The financial crisis that began in 2007 was accompanied by unprecedented funding market dislocations, which spilled across time zones and currencies. The resulting market disruptions triggered policy responses on a global scale, raising questions about the functioning and resilience of the various funding markets on which internationally active banks had relied.
This report, prepared by a joint study group of the Committee on the Global Financial System and Markets Committee, presents an assessment of this episode of global market disruptions. Under the chairmanship of Guy Debelle of the Reserve Bank of Australia, the study group documented in this report the pre-crisis pattern of cross-border funding among internationally active financial institutions, reviews what happened in various funding markets as the crisis unfolded and the policy responses that ensued, and distils five policy lessons from the experience.
© BIS - Bank for International Settlements
