Most of these countries have not been very directly affected by the problems arising from the complex innovations described above. In New Zealand, for example, we have not really seen the development of any of the complex financial instruments at the heart of the US’s current financial problems.
As market conditions once again worsened in March and investors pulled back from lending against all but the safest assets, the Federal Reserve established the Term Securities Lending Facility, which allows primary dealers to swap a range of less-liquid assets for  BIS Review 86/2008  3  Treasury securities in the Federal Reserve's portfolio for terms of about one month.