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.