This robbed markets of a big slug of liquidity, almost certainly exacerbating the price falls.
The demand for and the supply of credit is closely linked to changes in liquidity.
This paper derives the liquidity risk premium for voting and non-voting shares based on Arrow-Pratt's thoughts.
Banks must already adhere to stricter underwriting standards for credit CARDS and mortgage loans and will soon face higher capital and liquidity requirements.
Therefore, it is the most significant that strengthening the liquidity risk management and improving their own comprehensive competitiveness for commercial banks in China to adapt the new competitive situation and march toward the internationalization.
The term repo facility, which was available from December 1, 1999 and would be available until January 31, 2000, allows licensed banks to obtain in advance Hong Kong dollar liquidity from the HKMA for the year-end at a known price.
It encourages them to think about liquidity and concentration risk.
As a firm faced capital or liquidity problems, regulators would order early remediation.
He is wrong, however, to assume that this is evidence of a "liquidity trap" in the US financial system.
One reasonably safe bet is that a new Basel agreement, however onerous, will provide the basis for a level playing field on capital and liquidity.
Recently analysts asked Mr Pandit why he was letting capital “build to ridiculously high levels” and why cash and other sources of liquidity “seem to keep going up all the time”.
Will these prick the liquidity bubble?
Ample liquidity is therefore likely to continue to stoke asset prices.
To enhance secondary market liquidity, the HKMA has put in place an effective market-making system for Exchange Fund Bills and Notes.
In October the BOJ took some steps to increase liquidity, but the main reason for that seemed to be to try to appease politicians who were concerned about its independence.
We increase the liquidity of the secondary bond market.
In addition, the accord did not allow for the evaporation of liquidity that prevented the Banks from financing their businesses.
The proposal that seems to be gaining most traction is for a liquidity facility funded by a levy on the industry, akin to the FDIC’s deposit-insurance scheme for banks.
This funding liquidity is linked to a second facet, market liquidity-the ease with which assets can be sold without losing their value.
'Such programs are promising because they sidestep Banks and primary dealers to provide liquidity directly to borrowers or investors in key credit markets,' he said this week.
Valuation matters as much as liquidity.
Whatever the precise number, property is so big that when credit conditions loosen it is likely to absorb a lot of the extra liquidity; and when something goes wrong the effects will be serious.
Lender of last resort policy involves temporarily expanding liquidity and then returning to the price path consistent with price stability.
The higher this ratio is the better the corporation's liquidity and solvency is.
This method can help control the risks associated with the uncertainty of future cash flows and minimize the impact of an investment on a firm's liquidity problems.
What is liquidity?
It is worth paying a high price to stave off a liquidity crisis over New Year: better that weak Banks are able to borrow at the same rates as strong ones than that they are not able to borrow at all.
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