First, through enhanced information sharing and collective monitoring of market developments and, later on, by means of coordinated steps to provide liquidity, central banks have cooperated from the start of the crisis to guarantee the smooth functioning of global money markets and provide support to the international banking system.
The first initiative in this direction was the agreement in December 2007 between the Eurosystem and the US Federal Reserve to grant loans in US dollars to euro area counterparties in connection with the Fed’s Term Auction Facility.