With many securities markets not functioning well, with the funding of investment banks threatened, and with commercial banks unable and unwilling to fill the gap, the Federal Reserve exercised emergency powers to extend the liquidity safety net of the discount window to the primary dealers. 3 Our goal was to forestall substantial damage to the financial markets and the economy.
At the same time, asset quality also evidently improved, with the NPL ratio dropped from 25.4 percent in 2001 to 9.8 percent in 2005. Foreign financial institutions harvested profits amounting to $ million, increasing by 227.6 percent over that of 2001 which was registered at $ million. China is a country that honors its commitments.