Banks borrowed too much and took on risks they did not understand.

The banks borrowed money on the open market in the short-term.

Russian banks in need of cash can borrow for a short time.

At such a rate, a bank could borrow $1 million overnight and pay just 27 cents in interest the next day.

Many of them bypass banks and issue commercial paper to borrow directly from the open market.

With 15 percent inflation in Poland, even commercial banks cannot borrow for a 10- to 30-year period.

Banks borrowed €6.3bn in emergency overnight funds, down from €7.5bn a day earlier.

Even so, 138 banks borrowed €130bn for seven days.

The discount rate is less important now because most banks do not borrow directly from the Fed.

The bank borrows at low interest because its funds are guaranteed by the 152 member governments.