Sentences with phrase «liquidity buffer»
A liquidity buffer refers to a reserved supply of cash or easily sellable assets that a company or financial institution keeps to meet its short-term financial obligations. It acts as a safety net ensuring that the organization has enough readily available funds during times of financial difficulties or unexpected situations. Full definition
Moody's rates Saudi Arabia as A1 stable, with a strong fiscal position and significant liquidity buffers While a new Moody's Investors Services says that Saudi Arabia's credit outlook is stable Continue Reading
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Despite having share prices that move with market prices, these funds can give rise to first - mover advantages for redeeming shareholders and create the potential for destabilizing waves of redemptions and asset fire sales if liquidity buffers and other tools to manage liquidity risk prove insufficient.
The recent proposal by the Securities and Exchange Commission (SEC) to ensure mutual funds have ample liquidity buffers under stressed scenarios and undertake measures to address the risk of heavy redemptions and fire sales is notable in this regard.
At Basel, regulators agreed to more than double the minimum common equity requirement for banks to 4.5 percent from 2 percent, with an added liquidity buffer of 2.5 percent.
Its cost of risk fell dramatically while liquidity buffers improved more than twofold compared with the previous year - end.
Andrew Tyrie, chairman of the Treasury select committee, who usually addresses the chancellor as if he were a particularly dense economics student who had only got his place at Oxford because his father had personally offered to re-stock the college wine cellar, said that the Financial Services Authority should show more flexibility about how liquidity buffers might be used.
«Unlike the United States before the crisis, the portfolios and business lines of large banks are well diversified, and stress tests suggest that banks have adequate capital and liquidity buffers to weather a large house price correction,» according to the FSR.
Global bank balance sheets are stronger because of improved capital and liquidity buffers, amid tighter regulation and heightened market scrutiny.
When the bust arrives, over-indebted households and businesses want to increase their saving and liquidity buffers, and financial intermediaries want to raise credit standards.
The cash received from these repos is used to create a liquidity buffer for «after - hours» payments (those initiated through the direct entry (DE) system or NPP after 16:45 AEST / AEDT on business days, and all NPP payments on weekends and public holidays); hence, the minimum positions are set with regard to the potential size of these payments.
While many of these are well equipped to bear these risks, there are signs that liquidity buffers have been trending down in some market segments (Graph B, right - hand panel).
Haha, it is even worse — they use a $ 100 deposit to lend $ 1000 (or even more — depending on the reserve requirement) and they keep the $ 100 as a liquidity buffer.
This includes most prominently Basel III and structural banking reforms, such as the «ringfencing» of domestic operations and «subsidiarisation», which requires banks to operate as subsidiaries overseas, with their own capital and liquidity buffers, and funding dedicated to different entities.
«At a time when cyclical pressures are building and asset valuations are stretched, we should be calling for large banking organizations to safeguard the capital and liquidity buffers
«Unlike the United States before the crisis, the portfolios and business lines of large banks are well diversified, and stress tests suggest that banks have adequate capital and liquidity buffers to weather a large house price correction,» according to the FSR.
Still, investors are increasingly using the funds as a liquidity buffer for core debt holdings.