While there has been an easing of conditions in money markets, there are growing worries about falling share prices and health of financial institutions, the group of financial regulators and central bank  officials said.

Liquidity woes

“There remains a risk that further shocks may lead to a recurrence of acute liquidity pressures experienced last year. It is likely that we face a prolonged adjustment, which could be difficult,” they said in interim report to finance ministers from Group of Seven rich nations who met here on Saturday. It urged efforts “to rebuild confidence in creditworthiness and robustness of financial institutions.” “More capital is better than less capital” said Bank of Italy Governor Mario Draghi, who chairs the Forum.