Posts by "mandiwie"

juvenile jobless rate in spain near 30 % horrible

Merkel just pointing out fear of dramatic loss of domestic consum this year

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 in Canada
http://www.vancouversun.com/business/Inflation+makes+interest+rate+hike+more+likely+analysts/2706642/story.html

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