Bank for International Settlements (BIS) states that the global financial markets continued to show signs of recovery.

According to the agency, the current interbank money market has recovered to a level that has not been seen since early 2008. “Despite the uncertainty measures and the rate of economic recovery, investors remain wait and see, but optimistic at the end of the period of May to early September 2009,” the agency said, as quoted by AFP. In particular, the institution became a bank for central banks considered the world’s interbank money market interest rate differential has narrowed the main to a level not seen since early 2008.

Interest rate differential United States (U.S.) and even down to the lowest level since the start of the global financial crisis in mid 2007. After the collapse of Lehman Brothers, the gap widened with a sharp interest rate as the stopping of the loan disbursement. Central banks were forced to make an extra effort to pump liquidity to credit can be streamed back.

In the last quarterly Review, BIS noted that the signs of ebbing reduced liquidity premium and risk tolerance rebounds began to appear in the bond market. However, BIS rate volatility remains in the bond market as investors perceived uncertainty will speed recovery. “Over time bond investors seem increasingly convinced that the worst of the economic slump episode has ended, but recovery is likely to occur gradually and remain open to the possibility of setbacks,” BIS added.

BIS stated, it is combined with the low expectations of inflation, encouraging investors to return to the scale of expectations that monetary policy will begin to normal in the near future. Previously, the BIS and central banks of the world leaders have agreed on steps to strengthen supervision and regulation of the banking industry post-crisis global finance.

In a joint statement that noted, control measures intended to reduce the probability and level of economic damage and pressure on the financial industry.