Since then, we have seen liquidity flows moving back from our balance sheet to the money market. This is a sign of improving  4  BIS Review 78/2009  confidence and more favourable conditions. We therefore see some indication that the functioning of the money market is improving. Covered bond purchases Another unconventional element was added in May: outright purchases of covered bonds.
The high level of interest rates reflected a continuing high demand for credit, against the background of a further marginal decline in overall domestic saving. Total bank credit extended to the public and private sectors together increased by 16 per cent over the year.