Abstract
In early 2008, the three banks weren’t just experiencing lack of liquidity in Iceland; they also lacked foreign currency, as well as assets to pledge as collateral. Through their subsidiaries in Luxembourg, the banks had access to collateralized lending of the European Central Bank (ECB), the so-called main refinance operations, which are short-term loans, usually for a week.
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© 2014 Gudrun Johnsen
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Johnsen, G. (2014). Playing Tricks on the European Central Bank. In: Bringing Down the Banking System. Palgrave Macmillan, New York. https://doi.org/10.1057/9781137347350_9
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DOI: https://doi.org/10.1057/9781137347350_9
Publisher Name: Palgrave Macmillan, New York
Print ISBN: 978-1-349-47105-8
Online ISBN: 978-1-137-34735-0
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