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It also said it would accept a wider range of collateral for those loans.
The government has also urged them to accept a wider range of collateral.
Carney said the Bank would offer money over longer periods, accept a wider range of collateral and charge lower fees.
The firms will also be able to pledge a wider range of collateral to borrow from the Fed than they could as investment banks.
In a nutshell, they want the central bank to make more money available at longer maturities and against a wider range of collateral.
Today the British government announced its rescue plan to recapitalise British banks by offering to take preference shares in them and offering capital and taking senior debt against a wider range of collateral assets.
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The E.C.B. is providing unlimited three-year credit on easy terms to banks, against a wide range of collateral.
When the ECB intervenes in money markets to shape interest rates, it accepts a wide range of collateral, including less liquid assets such as mortgage-backed securities.
Introduced last year, the program, the Funding for Lending Scheme, allows British banks that extend credit to borrow from the Bank of England, against a wide range of collateral, at an annual interest rate as low as one-quarter of a percent.
On Monday, meanwhile, the Fed held its final auction through the Term Auction Facility, which was created in December 2007 to offer banks short-term loans against a wide range of collateral.
One reason the ECB could lend liberally was because it accepts a wide range of collateral, including corporate and asset-backed bonds.Special report Only human CSI: credit crunch Heroes of the zeroes Talk is expensive Fast and loose Assets and their liabilities On credit watch Smash the glass Amid the gloom Expect a lot... Sources ReprintsOffering less pukka security is not costless.
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