Lending operations and Liquidity: Difference between pages

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imported>Doug Williamson
(Create page. Sources: linked pages, BIS webpage https://www.bis.org/publ/cgfs63.pdf)
 
imported>Doug Williamson
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''Central banks - monetary policy - unconventional monetary policy''.
1.  


(LOs)
An asset's ability to be turned into cash quickly and without significant loss compared with current market value.


In response to the Global Financial Crisis central banks expanded their liquidity facilities to commercial banks.


This expansion included:
2.  
*Extending the maturity of lending operations
*Expanding the set of eligible collateral and the set of counterparties
*Imposing conditions on loans, such as bank lending to non-financial private firms.


An entity’s ability to pay its obligations when they fall due, especially in the short term.


'''Source: Unconventional monetary policy tools: a cross country analysis. Committee on the Global Financial System. October 2019'''
 
3.
 
An entity's ability to source additional funds to meet its obligations, including in the medium and longer term.
 
 
4.
 
A financial measure designed to measure an entity's ability to meet its obligations when they fall due.
For non-financial organisations, simple measures of liquidity include the ''current ratio'' and the ''quick ratio''.
 
For banks and other financial institutions, liquidity measures include those which identify how long the bank could survive if wholesale funds were to dry up and retail funding was heavily stressed.




== See also ==
== See also ==
* [[Central bank]]
* [[Authorisation]]
* [[Committee on the Global Financial System]]
* [[Authority limits]]
* [[Forward guidance]]
* [[Cash and cash equivalents]]
* [[Global Financial Crisis]]
* [[Cash forecasting]]
* [[Negative interest rate policies]]
* [[Cash pool]]
* [[Quantitative easing ]]
* [[Current ratio]]
* [[Reserve requirements]]
* [[Deep market]]
* [[Sterling Monetary Framework]]
* [[Headroom target]]
* [[Supply side policy]]
* [[Illiquid]]
* [[Unconventional monetary policy]]
* [[Liquidation]]
* [[Zero lower bound]]
* [[Liquidity preference]]
* [[ZLB problem]]
* [[Liquidity management]]
* [[Liquidity premium]]
* [[Liquidity risk]]
* [[Money management]]
* [[Quick ratio]]
* [[Run]]
* [[Security]]
* [[Solvency]]
* [[Supply chain finance]]
* [[CertICM]]
* [[Yield]]
 
 
=== Other resources ===
*[[Media:2015_06_June_-_Safety_first.pdf| Safety first, The Treasurer, 2015]]


[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Cash_management]]
[[Category:Financial_products_and_markets]]
[[Category:Liquidity_management]]
[[Category:Liquidity_management]]

Revision as of 20:44, 23 July 2016

1.

An asset's ability to be turned into cash quickly and without significant loss compared with current market value.


2.

An entity’s ability to pay its obligations when they fall due, especially in the short term.


3.

An entity's ability to source additional funds to meet its obligations, including in the medium and longer term.


4.

A financial measure designed to measure an entity's ability to meet its obligations when they fall due.

For non-financial organisations, simple measures of liquidity include the current ratio and the quick ratio.

For banks and other financial institutions, liquidity measures include those which identify how long the bank could survive if wholesale funds were to dry up and retail funding was heavily stressed.


See also


Other resources

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