3 The runs on ABCP also put considerable pressure on the banking system because of the liquidity backstops that banks had provided to the vehicles. 4 Some of the guarantors also insured mortgage-backed securities, and when doubts arose about the ability of the guarantors to pay claims on mortgage-backed securities, the credibility of their guarantees of municipal securities was also reduced.
Though diminishing, the rate of growth in lending to both households and firms remained higher in August than the rates for the euro area. In September the three-month growth came to 3.9 per cent on an annualized basis. However, surveys of firms find a tightening of lending standards and growing difficulty in obtaining credit.