We must however avoid overdiversification as this too can erode return on investment.We can hedge against
liquidity risks first by ensuring that our spending budgets accurately reflect of our monthly expenses.
However, it is of the utmost importance that banks themselves manage their short-term
liquidity risks in all significant currencies.
''Significant constraints on banks' capacity and willingness to absorb potential increases in government financing needs in the event of a shock are intensifying government
liquidity risks in Kenya (B2 stable),'' Moody's said in a report released on Tuesday.
Shanghai: China's latest tightening of regulations on money market funds (MMF) is unlikely to slow sector growth significantly, but should lower
liquidity risks marginally, said Fitch Ratings.
The BSP explained earlier that while the capital adequacy ratio cover solvency issues and risks, the NSFR and LCR will protect banks against
liquidity risks which may happen even if a bank is still solvent.
China has said that it has launched new rules to protect lenders from
liquidity risks.
The stability of the Nigerian banking system comes after foreign currency
liquidity risks moderated due to rising oil prices and a more liberal foreign exchange policy, says Moody's Investors Service in a report, Banking System Outlook -- Nigeria;
Liquidity risks have eased but earnings pressure and loan quality risks remain.
Section III describes methods of constructing measures for
liquidity risks and market power.
It noted
liquidity risks would always be present as banks expand their lending activities.
Investor s redeemed several billion dollars' worth of shares in US high-yield bond funds following the Third Avenue Focused Credit Fund's redemption halt in December, highlighting the importance of assessing
liquidity risks within mutual funds.
Market characteristics: Some of the characteristics of the market are expected to affect a company's stock
liquidity risk in this research, including stock liquidity, volume of shares traded, and can be past returns and firm size, and are presented in the model as a control variable affecting stock
liquidity risks.
Swing pricing would enable mutual funds, subject to board approval and oversight, to reflect in a fund's net asset value (NAV) costs associated with shareholders' trading activity, and "is designed to protect existing shareholders from dilution associated with shareholder purchases and redemptions and would be an additional tool to help funds manage
liquidity risks," the agency states.The SEC oversees registered investment companies with combined assets of approximately $18.8 trillion and RIAs with approximately $67 trillion in regulatory assets under management, White noted.
