Bernanke applauds central banks abroad

FRANKFURT, Germany, Nov. 14 (UPI) -- U.S. Federal Reserve Chairman Ben Bernanke used an appearance in Frankfurt, Germany, Friday to highlight international banking cooperation.

A conference celebrating the 10th anniversary of the euro was 'an opportunity not only to celebrate an impressive and historic achievement, but also to reaffirm our commitment to cooperation," Bernanke said.

Central banks have recently cooperated with a simultaneous cut in lending rates at six banks, increased amounts and numbers of swap lines and other measures, Bernanke said.

On some swap lines -- used by central banks to lend to each other -- terms have been adjusted and new forms of collateral accepted, Bernanke said.

"Financial markets remain under severe strain," he said, but he praised the international banking community for "an unprecedented degree of policy coordination among the sovereign states within the euro area."

The need for such cooperation has never been higher, he said.

"International loans and deposits have grown tremendously, as has the issuance of international debt securities. These developments have posed new challenges for conventional central bank liquidity and lender-of-last-resort policies."