U.S. and European central banks inject billions of dollars to ease the credit crisis.

20 U.S. Federal Reserve Board announced on 19th auction through the short-term loans to commercial banks 75 billion U.S. dollars of funds to alleviate the credit crisis. .Day, the European Central Bank to the market 250 billion dollars, the two central bank lending rates are fixed at 2.1%. .<P> Since last August increased subprime mortgage defaults led to full-blown credit crisis has been dysfunctional credit markets, reduction of the inter-bank lending, the central bank and then take special measures to make loans back to normal levels. .Analysts believe that the measures taken after a series of interest rate cuts the Fed may be more in future auctions by way of loans to help commercial banks and investment firms overcome the credit crunch. .</ P> <P> (http://finance.) This is the 12th Federal Reserve loans at auction, for a total commercial banks 5,100 billion dollars. .This is the second time this month the Fed auction loans, loan interest rate from 2.22% to 2.10% adjustment to the present. .This month the first auction was held on the 5th, but also provide 750 billion dollars. .</ P> <P> Fed funds provided through the auction was to gradually expand the scale trends. .The first two auctions provide loans to 20 billion U.S. dollars each, followed by four auction loans are 300 million U.S. dollars. .Starting from March this year, each auction activities increased the amount of loans to 500 billion U.S. dollars. .5 at the beginning of this month, the Fed in turn held every two weeks to further increase the amount of the loan auctions to 750 billion dollars. .</ P> <P> establishment of mechanisms for short-term loan auctions to commercial banks with short-term loans from the central bank a new way, the Fed hopes that this mechanism can stimulate the activities of commercial lending between banks and commercial banks for individuals and businesses .lending activities. .</ P>.