The BCL’s retail interest rate statistics reveal that the banks’ response to the money market disruptions and the increase in wholesale funding costs falls short of what several observers had feared.
In a world of financial institutions with a presence in many lines of business crossing national boundaries, obtaining such information, developing cogent analyses, and deciding on a course of action in a crisis requires widespread cooperation among many disparate agencies. Moreover, I should note that, even for possible bank-centric crises, the financial landscape in the United States has changed.