BIS Review 47/2009  3  One of the lessons we learned from the 1997 Asian Financial Crisis was the value of managing external debt and building up FX reserves for self insurance. This chart shows that we have indeed learned this lesson well.
The guarantee of the senior debt of all FDIC-insured depository institutions and their holding companies will restore the confidence of these institutions' creditors and reinvigorate the crucial inter-bank lending markets. Additionally, the Federal Reserve is pressing forward with its facility to provide a broad backstop for the commercial paper market, so vital to the functioning of our businesses.