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Jul 13, 2021 · trigger liquidity risk by causing depositors to run the bank; the empirical suggest that liquidity problems are often triggered by concerns that the bank is insolvent due to poor asset quality (e.g., Gorton, 1988). To improve the bank’s asset portfolio choices and risk management, regulatory monitoring and capital requirements can be used.
Jun 29, 2023 · What Regulators Should Consider When Rethinking Liquidity Rules Post-SVB. Katie Collard and Brett Waxman. June 29, 2023 Print. In recent years, bank liquidity rules have taken a back seat to other parts of the regulatory framework, such as capital. The most recent major overhauls to the post-Global Financial Crisis liquidity framework were ...
Jul 11, 2024 · The researchers study how a liquidity shock to one bank impacted the liquidity positions of other banks before and during the COVID-19 pandemic. They find that this shock transmission, or “spillover,” was stronger during the COVID-19 period than the pre-pandemic period, on average. They also find that, on average, connections that can ...
Feb 17, 2010 · At the beginning of this month, we began to reduce the eligibility of non-mortgage loans as collateral for the Standing Liquidity Facility from 100 per cent to 20 per cent. 16. The financial crisis has subsided, and financial conditions have improved significantly over the past ten months, both globally and in Canada.
Our assessment shows that the Canadian banking sector created liquidity steadily from 2012 to 2015, stabilizing in 2016 through the second quarter of 2019. Over this period, liquidity creation was mainly driven by two sets of movements on banks’ balance sheets: decreases in illiquid liabilities and increases in liquid liabilities such as bank ...
- Annika Gnann, Sahika Kaya
- 2019
Central Bank Liquidity Policy in Modern Times. Central banks play a crucial role in promoting financial stability. They act as financial system stabilizers through their capacity to create liquidity and channel it to financial institutions and markets in times of stress—a role that has evolved and expanded substantially over the past 15 years.
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The liquidity problems during the crisis led to calls for liquidity. regulation. As a result, the Basel III accord introduces global liquidity standards. These. comprise a Liquidity Coverage Ratio (LCR) to withstand a stressed funding scenario and a Net. Stable Funding Ratio (NSFR) to address liquidity mismatches.
