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International policy efforts to strengthen financial systems have highlighted the role of liquidity. This paper … explores a framework to assess arrangements for market liquidity and lays out elements of systemic liquidity policy. Robust … arrangements for liquidity provide confidence to market participants that liquidity can be mobilized on demand in a predictable and …
Persistent link: https://www.econbiz.de/10005604876
The Swedish banking system faced a severe liquidity strain during the global financial crisis owing to their extensive … recommendations made in the Financial Sector Assessment Program (FSAP) Update in the area of systemic liquidity risk management …, especially in relatively weak areas and some aspects of Riksbank’s domestic liquidity toolkit. But it does not cover a range of …
Persistent link: https://www.econbiz.de/10011243697
the existence of the structural liquidity in the banking system; bank’s unwillingness to lock up liquidity in the NBP … also shows the effectiveness of the NBP’s responses to the financial crisis and structural liquidity surplus. …
Persistent link: https://www.econbiz.de/10011142119
United Kingdom, the euro area, and Japan during the recent crisis on interbank credit and liquidity risk premia …. Announcements of interest rate cuts, liquidity support, liability guarantees, and recapitalization were associated with a reduction …
Persistent link: https://www.econbiz.de/10008559268
The Belgium Financial Sector Assessment Program (FSAP) stress testing exercise examines a financial sector that remains in a state of transformation. Domestic economic challenges remain sources of continued uncertainty as the banking sector consolidates and reduces funding risks. Insurers face...
Persistent link: https://www.econbiz.de/10011245216
This paper discusses operational aspects of official emergency liquidity support to individual institutions under …
Persistent link: https://www.econbiz.de/10005263737
The crisis in Europe has underscored the vulnerability of European bank funding models compared to international peers. This paper studies the drivers behind this fragility and examines the future of bank funding, primarily wholesale, in Europe. We argue that cyclical and structural factors have...
Persistent link: https://www.econbiz.de/10011242310
Banks’ liquidity holdings are comfortably above legal or prudential requirements in most Central American countries …. While good for financial stability, high systemic liquidity may nonetheless hinder monetary policy transmission and … precautionary liquidity buffers is associated with measures of bank size, profitability, capitalization, and financial development …
Persistent link: https://www.econbiz.de/10011142020
The adverse impact of the crisis on Luxembourg’s growth outlook is partly mitigated by the authorities’ well-conceived fiscal policy response. The staff report for Luxembourg’s 2009 Article IV Consultation highlights economic developments and policies. It combines...
Persistent link: https://www.econbiz.de/10011244188
This paper surveys the foreign exchange markets, money and secondary government security markets, and stock exchanges in 107 smaller economy countries. The underdevelopment of these markets impedes risk transfer, monetary policy, corporate financing, and the capacity to absorb capital inflows....
Persistent link: https://www.econbiz.de/10011245902