As a result of this, the European Central Bank (ECB) announced that it would provide as much funds as banks in Europe required through three year loans. So the European central bank has become the intermediary of last resort for the European banking system because the banks do not trust each other.
More recently, as the lack of trust of some of the governments of Europe has intensified, the ECB has had, in effect, indicated its willingness to act as intermediary of last resort to these governments too. One of the main reasons the ECB has decided to do this is because of the lack of trust in the longevity of the euro.