The costs for banks to borrow money from each other remain at highly elevated levels in spite of the global government action taken to cure the paralysis at the heart of the financial system.
Stubbornly high interbank lending rates indicate that tensions remain in the money markets even though the US, UK and various European governments have pledged to inject capital directly into banks and guarantee many types of bank debt.
Analysts said that while stock markets had rallied and the cost of protecting bank debt against default had tumbled by record amounts in the US, it would take time for the reduced costs of what is in effect government-sponsored funding to show through.