(Adds statement details, background on Swiss bank merger)
March 19 (Reuters) - The U.S. Federal Reserve on Sunday
said it had joined with the Bank of Canada, Bank of England,
Bank of Japan, European Central Bank and Swiss National Bank in
a coordinated action to enhance the provision of liquidity
through the standing U.S. dollar swap line arrangements.
The move came on the heels of a deal brokered by Swiss
authorities to have UBS buy rival Swiss bank Credit
Suisse to prevent its disorderly collapse and signals
the depth of concern central bankers have over the recent
turmoil in the financial system on both sides of the Atlantic.
"To improve the swap lines’ effectiveness in providing
U.S. dollar funding, the central banks currently offering U.S.
dollar operations have agreed to increase the frequency of
seven-day maturity operations from weekly to daily,"
the Fed said in a statement
issued alongside announcements from the other five central
banks.
Operations will commence on Monday and will continue at
least through the end of April, the Fed said.
(Reporting By Dan Burns; editing by Diane Craft)
