A strong liquidity profile is important for all companies. This is particularly true for banks, given the maturity transformation role that is inherent to much of their business. The maintenance of a sound and efficient financial system requires banks to hold a liquidity profile that is robust...

In this article, the evolution of the liquidity management regime over the past few years is detailed. This evolution is placed in the context of the prevailing financial market stresses. The robustness and adaptability of the system to a variety of shocks is discussed. Particular mention is...

In July 2006, the Reserve Bank commenced implementation of changes to its liquidity management regime. Under the existing regime, there had been increasing evidence of insufficient liquidity in the banking system at various times and some inefficiencies in the way in which it was provided. Under...