This resulted mainly from uncertainty regarding the extent of losses on complex financial instruments linked to sub-prime mortgages in the US. Central banks responded quickly to counteract these adverse conditions in money markets.
The ECB, in particular, was in a position to take strong action in the light of the pre-existing arrangements whereby banks had an extensive range of collateral that could be used to access central bank liquidity. These arrangements effectively addressed the problems at the short-end of the money market.