"The U.S. dollar shortage in global banking" is a study just published by 
BIS, Bank for International Settlements, which investigates the causes that led to the sudden shortage of dollars in the global banking system that occurred in late September 2008. The increase in foreign currency positions, largely in dollars, by the banks will start at the end of 2000 and grow at an ever higher, from 10% in 2001 to reach an increase of 30 % in 2007 and is located mainly in the European banking sector.
European banks have, throughout this period, relied primarily on the collection by the extensive network of branches and then through the currency operations swaps to convert local currencies (sterling, euro and Swiss francs) in order to be able to finance their assets denominated in dollars, increasing amounts.
Furthermore, banks relied on interbank loans and those produced by the central bank.
So far, however, increased the risk related to the tools used to find the dollars, both in interbank funding for the operations of currency swaps.
Also at this time we must add the risk arising from the fact that most of the loans were short term and long-term investments were.
Since August 2007 the first collapse of interbank funding difficulties began by banks to find new financing by increasing the use of such non-bank financing sources and making it more expensive to use of currency swaps.
is made then the race for the hoarding of dollars more and more difficult is the failure of Lehman Brothers, which was followed by the withdrawal from the financial markets of large amounts of money by the investment funds, and especially by some central banks of emerging countries, which escaped to international markets for these funds intended for its domestic banking system.
research can download the entire at this link:
The U.S. dollar shortage in global banking
see also:
Why not get a loan
Fundamentals of U.S. structured finance
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