Increased financial intermediation Before discussing the latest coordinated initiatives, I would like to point out that, as a result of its enhanced liquidity interventions in euro and other currencies (notably, in USD) during the turmoil, the Eurosystem has significantly increased its involvement in financial intermediation in the euro area.
The Board proposed to reserve its authority to reimpose the funding, credit extension, and credit enhancement firewalls in the event that an affiliated bank or thrift becomes less than well capitalized and the bank holding company does not promptly restore it to the well-capitalized level.