This event triggered a sharp increase in the spreads between Euribor and EONIA swap rates across all maturities (as shown in Chart 12). Banks hoarded liquidity (or lent only for the shortest maturities) in view of growing concerns about the creditworthiness of counterparties and heightened uncertainty about their own liquidity positions. Conditions in money markets in other advanced economies exhibited similar developments.
In November last year, I was pleased to welcome Governor Dakić and Vice Governors Fabris and Milošević to Frankfurt for the second high-level policy dialogue between our respective institutions. The ECB conducts such dialogues with all the central banks of those countries which are negotiating to join the EU.