U.S. inter-bank lending rates are relatively unchanged on Monday after a meeting of the G-20 over the weekend.
According to the British Banker's Association on Monday, the overnight U.S. dollar Libor fell 1 bps to 0.40% while the three-month rate was relatively unchanged from Friday's 2.24% level.
The data follows two consecutive days of increases in inter-bank lending rates.
Although no concrete stimulus measures were drawn up at the emergency G20 meeting in Washington this past weekend, world leaders agreed they must work together to plug the holes in current financial regulatory systems that are the root of the current economic meltdown.
The statement released following the meeting said more transparency and accountability is needed in financial markets.
Specifically, G20 leaders decided policy must be improved to allow for more oversight in derivative markets and the analysis of "complex, illiquid products." They also agreed on the necessity to align global accounting standards, and to review compensation schemes in companies that reward risk-taking.
A timeline must be put in place by finance ministers, they said, to complete these "high priority" initiatives by March 31, 2009.
By Erik Kevin Franco
©CEP News Ltd. 2008