The Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the Federal Reserve, and the Swiss National Bank announced Sunday evening GMT a coordinated action to enhance the provision of liquidity via the standing U.S. dollar liquidity swap line arrangements.

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 7-day maturity operations from weekly to daily, the report said. These daily operations will commence on Monday, March 20, 2023, and will continue at least through the end of April.

The network of swap lines among these central banks is a set of available standing facilities and serve as an important liquidity backstop to ease strains in global funding markets, thereby helping to mitigate the effects of such strains on the supply of credit to households and businesses, according to the report.

Earlier Sunday, UBS agreed to pay in excess of $3 billion for Credit Suisse and assume up to $5.4 billion in losses. The US Treasury and Federal Reserve said jointly they welcomed the move and announced that liquidity positions of the U.S. banking system are"strong" and the U.S. financial system"resilient".

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