Photo by: BBC News

Central banks have rushed to keep cash flowing through the world’s financial systems after the failures of two US banks, and the rescue of Credit Suisse sent shockwaves across global markets.

Six central banks, including the Bank of England, announced they would boost the flow of US dollars from Monday.

Such measures were last taken during the 2008 financial crisis and at the height of the Covid pandemic.

It comes after UBS bought Credit Suisse in a state-backed rescue deal.

Stock markets have fallen sharply since Silicon Valley Bank and Signature Bank collapsed in the US last week, sparking fears of runs on other banks.

They remained under pressure on Monday despite the rescue of Switzerland’s second-largest lender this weekend.

Central banks have stressed the global banking system is safe.

However, there are concerns other lenders could get into trouble after recent rises in interest rates left some sitting on significant losses.

In a statement, the Bank of England, Bank of Japan, Bank of Canada, the European Central Bank, US Federal Reserve and Swiss National Bank said they had launched the coordinated action to keep credit flowing.