Recently the Governing Council has thus agreed on standard-setting recommendations for the structure and pricing of government guarantees  BIS Review 8/2009  1  and capital injections in the banking sector. Likewise, the Governing Council has laid down rules for how EU central banks can deposit money in publicly owned banks.
This guarantee covers the obligations most likely to be withdrawn when confidence erodes, but it is also structured to encourage banks to lengthen the maturity of their borrowing to provide stability, rebuild confidence, and stimulate lending.