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Major types of liquidity fall into three major categories: 1. Shortages in central bank liquidity; 2. Specific commercial bank liquidities; 3. Shortages in financial market liquidity.
In business terms, liquidity is very important as it can help an establishment to quickly come out of debt. Liquidity is the measure of how sellable an investment or asset is.
Douglas W. Diamond has written: 'Liquidity shortages and banking crises' -- subject(s): Bank failures, Bank liquidity, Banks and banking, Central, Central Banks and banking 'Liquidity, banks, and markets' -- subject(s): Econometric models, Bank liquidity, Money market, Liquidity (Economics) 'Illiquid banks, financial stability, and interest rate policy'
cash liquidity ratio
In business terms, liquidity is very important as it can help an establishment to quickly come out of debt. Liquidity is the measure of how sellable an investment or asset is.
The State Bank of Pakistan, which is Pakistan's central bank, works by regulating liquidity and other banking activities.
Basel III (or the Third Basel Accord) is a global, voluntary regulatory framework on bank capital adequacy, stress testing, and market liquidity risk. Basel III is intended to strengthen bank capital requirements by increasing bank liquidity and decreasing bank leverage. Credits: Wikipedia
Bank deposits come under this category, provided the bank is insured.
Statutory liquidity ratio
If your company is profitable, you will have the money to be liquid. Only when the money isn't there does liquidity become a factor.
If your company is profitable, you will have the money to be liquid. Only when the money isn't there does liquidity become a factor.
SLR stands for Statutory Liquidity Ratio. Statutory Liquidity Ratio is the amount of liquid assets, such as cash, precious metals or other approved securities, that a financial institution must maintain as reserves other than the Cash with the Central Bank. The statutory liquidity ratio is a term most commonly used in India.