Thereby, the increased dependence
on central bank liquidity may have weakened the resilience of markets, making them more prone to a (small) shock, such as an adjustment of market expectations on monetary policy.
Not exact matches
The Federal Open Market Committee and the European
Central Bank are not only no longer offering a combined stimulus, they are a net drain
on liquidity for the first time since stimulus was first introduced by former Fed Chairman Ben Bernanke.
As a result, primary dealers are the most influential non-governmental players in global financial markets, which is why they supposedly must meet certain
liquidity and quality requirements and provide
central banks with analysis and market intelligence
on the state of the worldwide markets.
COPENHAGEN, Sept 28 - Danish
banks drew 37 billion Danish crowns
on Friday from a three - year lending facility offered by the
central bank to help boost their
liquidity and get them off state aid.
Moreover, it was not a coincidence that China made its announcement
on the same morning that the other major
central banks of the world announced their coordinated action to head off a
liquidity crunch for European
banks.
The European
Central Bank (ECB) stopped all payments by one of Latvia's largest lenders
on Monday, after its
liquidity position collapsed in the wake of allegations from U.S. authorities.
In a statement
on October 20, 1987, Fed Chairman Alan Greenspan said, «The Federal Reserve, consistent with its responsibilities as the Nation's
central bank, affirmed today its readiness to serve as a source of
liquidity to support the economic and financial system» (Carlson 2006, 10).
Strategists at
Bank of America Merrill Lynch put a fine point
on the paradox of how
central banks created both a
liquidity solution and problem with their historically aggressive measures while they and congressional legislators created a tighter regulatory environment.
Banks are relying on the short end of the curve for much of their funding, which has been facilitated by the influxes of liquidity provided by the central banks, but challenges remain in the mid - to longer
Banks are relying
on the short end of the curve for much of their funding, which has been facilitated by the influxes of
liquidity provided by the
central banks, but challenges remain in the mid - to longer
banks, but challenges remain in the mid - to longer end.
If,
on the margin,
liquidity begins to decline in 2018 resulting from QT, fed rate hikes and other
central banks ending their QE programs, there is a reasonably high probability that risk assets will suffer.
Retained issues are not placed in capital markets, but kept
on the issuer's balance sheet for collateral purposes in
central bank liquidity operations.
This report is the result of a coordinated research effort by the
central banks of Canada, Italy, Japan, the United Kingdom and the United States and the
Bank for International Settlements
on the determinants of market
liquidity and
on how
central banks and other public authorities influence these determinants.
Because time is of the essence, and because during negotiations the
central bank was squeezing
liquidity [
on Greek
banks] in order pressurise us, in order to succumb, my constant proposal to the Troika was very simple: let us agree
on three or four important reforms that we agree upon, like the tax system, like VAT, and let's implement them immediately.
On Monday, the European
Central Bank will meet to discuss the emergency
liquidity provided to Greek
banks (which is currently capped, forcing capital controls to be imposed a week ago).
The BoE provides gold custody services primarily to
central bank customers to help them get access to London gold market
liquidity, although it also holds some gold custody accounts
on behalf of certain commercial
banks that support
central bank access to the
liquidity of the London gold market.
There's no shortage of factors to weigh as the Fed stands ready to hike interest rates faster than anticipated
on worrying signs of inflation growth and the tap of foreign
liquidity supporting 10 - year Treasuries could dry up as
central banks in Europe and Asia curb their quantitative easing programs.
During a CNBC interview
on Sept. 24, 2010, Tepper predicted that either the market would rally
on strong fundamentals or the
central bank would inject more
liquidity into the financial system to boost equities.
In other words, financial institutions rely
on the fiat currency - generating machine known as the
central bank to shore up
liquidity when times get tough.
A reduction in treasury bills confirms less pressure
on the domestic economy as the
Central Bank is not in a haste to mob up
liquidity.
Central banks are still adding to
liquidity, perhaps to bail out
banks who have made bad loans to parties
on the wrong side of securities trades.
Of course, markets have long known that eventually, after years of
central bank liquidity injections, those stimulus measures would need to be unwound - but as we get closer to policy normalization, Jens Moestrup Rasmussen expects investor nervousness to be
on the rise.
But it's not clear where Smurfit stands in this regard — there are certainly fresh threats to global growth, and debt overhang will restrain the developed markets for years to come —
on the other hand, Smurfit's now a dominant player, emerging markets continue to perform well, and Western
central banks continue to pump out a tsunami of
liquidity to combat debt deflation.
As the world found itself
on the precipice of bearish stock price decimation two years ago (01/16), global
central banks supercharged their stimulus by injecting trillions of additional
liquidity.
Central banks haven't yet learned to limit their attention
on this core function of ensuring financial
liquidity.
«The idea of having a fiat - backed proxy of
central bank money issued
on smart contacts for financial institutions to exchange
liquidity globally seems a very powerful concept,» he said.