More than one year later, the global financial system is still undergoing a process of de-leveraging, and market functioning is suffering by lack of confidence on the exact impact of the turmoil on the robustness of financial institutions and their ability to weather the current shock. This lack of confidence further intensified following the collapse of Lehman Brothers in September.
In this context, both central banks and governments have announced coordinated actions designed to restore confidence and to preserve financial stability. Furthermore, on 12 October a concerted action plan was adopted by the euro area Heads of State aiming at: facilitating the funding of banks through various means; providing additional capital resources to financial institutions; and recapitalisation of distressed banks.