The world’s main central banks have launched concerted action to tackle dollar funding problems in Europe, sending banks’ share prices sharply higher across the continent.

The European Central Bank, the Bank of England and Switzerland’s central bank said they would provide three-month loans to tide banks over until the end of the year. As well as the immediate relief offered to banks, the co-ordinated action amounted to a display of firepower, apparently further intended to boost investor confidence. Read more