Basel III i ahead and underpins the importance of liquidity forcing banks to change their strategy dramatically
have a lok at the related isssues of Basel iii
Making global liquidity more robust
20. The crisis vividly demonstrated that adequate liquidity is a prerequisite for financial stability.
The drying up of liquidity at the level of financial institutions, countries and ultimately the global system caused the seizing up of credit provision and of financial flows.
Cross-border flows are often the most vulnerable during financial crisis, and emerging markets can face damaging volatility in foreign exchange and liquidity flows.
21. Just as strong capital is a necessary condition for banking system soundness, so too is a strong liquidity base.
Many banks that had adequate capital levels still experienced difficulties during the crisis because they did not manage their liquidity in a prudent manner.
The lesson is that banks resilience to system-wide liquidity shocks affecting both market and funding liquidity must be significantly increased and their management of this risk strengthened.
22. To this end, we are substantially raising the bar for global liquidity risk regulation:
The Basel Committee will issue by the end of 2009 a new minimum global liquidity standard.
This new regulatory framework introduces a liquidity coverage ratio that can be applied in a cross-border setting.
It establishes a harmonised framework to ensure that global banks have sufficient high-quality liquid assets to withstand a stressed funding scenario specified by supervisors.
The Basel Committee will also formulate a structural ratio to address liquidity mismatches and promote a strong funding profile over longer-term horizons.
This new standard complements the supervisory guidance for banks liquidity risk management practices, the implementation of which is being assessed in supervisory reviews.
Ashraf, besides, for me Greek CDS will fuel the risks tremendously How shall the Greek pay the debts ? you already made critical marks about that, I know
so Greek CDS will be not the solution, but the prolongation of the crisis:
cheap money was the decisive harmful Katalysator for the subprime crisis and will it be now again.
Ashraf, I would like to explain to you the most weighing problems of german economy for me. Germany shows an ancient population (over 30 % now are older than 60 years) and Harz 4 is leading into the wrong direction. Did you know that in January 2010 6,5 Mio people got Harz 4 transfer support, 1,7 Mio children under 15 years must live from this transfer. 15 Mio people with migration backgrund compensated falling birth rates since 1970 until now; The population in Germany - acording to forecasts -will shrink in the next years from 82 Mio to 74 Mio (or 60 Mio) with alwas less children and more old people.
For these reasons I d`ont belief Germany can afford so much to bailout Greece
Try publishing this in the UK weekend papers: Traders bet BankofEngland will raise rates to 6.25% --highest since 1… https://t.co/GWXrTEAk4R(10 months ago)
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ما وراء هبوط الدولار مع الذهب و من منهما يتمكن الارتداد؟
موعدنا الآن في غرفة شركة إكس أم لجلسة الأسواق
https://t.co/Y7tD0RxCS2
@XM_COM (10 months ago)
Jobless claims > 300k before next FOMC meeting would be ideal for Fed to make up for any CPI upside surprise (10 months ago)
"Cook & Eat at Home" scheme may come next to defeat UK inflation... (10 months ago)
Earlier in the week gold selloff was attributed to smaller than exp China EASING. Metal is now holding v well despi… https://t.co/ZW9cmXTPWW(10 months ago)
تجنب الخطأ الشائع المتمثل في خلط مؤشرات الناسداك وداوجونز و الاس ان بي وإليكم كيفية تفاعله بشكل مختلف مع تذبذبات في عوائد السندات ليست كل مؤشرات الأسهم متشابهة. شاهد الفيديو
How to improve your decision--makingh between Nasdaq100 and SPX by watching technicals in bond yields -Details in video description.
Latest Hot-Chart - Apr 09
Bitcoin versus Miners Performance
As many of you know 2023 was kind to members of our WhatsApp Broadcast Group who snapped up shares in bitcoin miners, while 2024 has so far been more superior to Bitcoin than most of the miners...
View Hot-Chart..
http://www.youtube.com/watch?v=M31hopk3Gmo&feature=player_embedded
http://www.bloomberg.com/apps/news?pid=20601087&sid=aJx0FiNBapiU&pos=3
Paramo (ECB member) Warns Against Keeping Money Easy Too Long
yen weakness may easen ?
Dollar May Drop on Japan’s Holiday ‘Jinx,’ Credit Agricole Says
http://www.bloomberg.com/apps/news?pid=20601083&sid=aL6WwgwuhYVs
have a lok at the related isssues of Basel iii
Making global liquidity more robust
20. The crisis vividly demonstrated that adequate liquidity is a prerequisite for financial stability.
The drying up of liquidity at the level of financial institutions, countries and ultimately the global system caused the seizing up of credit provision and of financial flows.
Cross-border flows are often the most vulnerable during financial crisis, and emerging markets can face damaging volatility in foreign exchange and liquidity flows.
21. Just as strong capital is a necessary condition for banking system soundness, so too is a strong liquidity base.
Many banks that had adequate capital levels still experienced difficulties during the crisis because they did not manage their liquidity in a prudent manner.
The lesson is that banks resilience to system-wide liquidity shocks affecting both market and funding liquidity must be significantly increased and their management of this risk strengthened.
22. To this end, we are substantially raising the bar for global liquidity risk regulation:
The Basel Committee will issue by the end of 2009 a new minimum global liquidity standard.
This new regulatory framework introduces a liquidity coverage ratio that can be applied in a cross-border setting.
It establishes a harmonised framework to ensure that global banks have sufficient high-quality liquid assets to withstand a stressed funding scenario specified by supervisors.
The Basel Committee will also formulate a structural ratio to address liquidity mismatches and promote a strong funding profile over longer-term horizons.
This new standard complements the supervisory guidance for banks liquidity risk management practices, the implementation of which is being assessed in supervisory reviews.
http://compliancereporter.com/Article.aspx?ArticleID=2448991
what about necessary Liquidity Guidelines for sovereigns ?
http://www.vancouversun.com/business/Inflation+makes+interest+rate+hike+more+likely+analysts/2706642/story.html
How shall the Greek pay the debts ? you already made critical marks about that, I know
so Greek CDS will be not the solution, but the prolongation of the crisis:
cheap money was the decisive harmful Katalysator for the subprime crisis and will it be now again.
For these reasons I d`ont belief Germany can afford so much to bailout Greece