Even well-capitalised financial institutions experienced liquidity problems and central banks needed to intervene, including with unconventional measures, to provide large scale financing and thereby prevent further escalation. Therefore the new liquidity requirements, introduced as part of the Basel III framework, are of utmost importance.
BIS Review 137/2007  1  For the individual countries, however, the story could be somewhat different, given that favourable developments in the euro area could mask a considerable level of diversity among countries. In recent years, there has been much discussion about divergences across countries in the euro area.