ECB, US Fed want to ease cash access in times of crisis

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FRANKFURT, (Internet): The European Central Bank (ECB), the US Federal Reserve and other central banks plan to ease dollar refinancing rules in times of emergency, the Financial Times Deutschland said Thursday.

According to a proposal, the Fed would make loans in the US currency to banks offering euro-denominated real estate assets as collateral, the newspaper said, quoting financial sources.

Until now, central banks have only accepted collateral backed by their own currencies.

The measure is aimed at ensuring that money markets on which commercial banks lend to each other keep operating in times of crisis.

These markets have remained under pressure since the US market for high risk, or subprime, mortgages collapsed a year ago, and analysts say one reason is that it is not possible to offer collateral in foreign currencies.