Headwinds from significant fiscal consolidation coupled with the repercussions of a tighter monetary policy and liquidity squeeze
are two of the main challenges that banks in the Middle East and North Africa region will have to grapple with going forward, according to the MENA Financials--Selective Opportunities report by Arqaam Capital.
Griffiths and Winters (2005a) find that one-month CP rates increase at the year-end in a pattern that they suggest is consistent with a year-end preferred habitat for liquidity (liquidity squeeze
Fitch cut its economic growth forecast for Greece to 0.5 percent this year from 1.5 percent in January, citing the liquidity squeeze
faced by firms due to increased government arrears to suppliers and bank funding strains.
The management of the bank said in its report that the activity of the STB took place during the first six months of 2012 in a context characterized mainly by a liquidity squeeze
at the sector level.
Traders said on Friday they anticipate the central bank to lower banks' RRR soon to ease a recent liquidity squeeze
, triggered by regulatory requirements and a large initial public offering.
"Since the phase-out of subsidies, airlines have been experiencing a liquidity squeeze
and the number ofgrounded planes is on the increase."
Starwood Hotels and Resorts Worldwide's plans to expand in Europe through management and franchise deals has been slowed by a liquidity squeeze
that has caused some hotel developers to put projects on ice, an executive said.
If investors refuse to buy the debt on any terms, even a fiscally prudent government could find itself in a liquidity squeeze
and become insolvent.
The Fed would then cause a liquidity squeeze
and so distort asset prices as to make much construction, sizable amounts of other investment, and some consumption goods unaffordable (and thus unprofitable to produce).
Oputu reiterated that the N200 billion fund was to tackle the prevailing liquidity squeeze
so as to provide credit access to operators for the restructuring of moribund factories, among others.
It can help answer the question of whether the banks were suffering from a liquidity squeeze
or from bad investment decisions.
His colleague Ewald Nowotny said the ECB was committed to offering extra funds to ensure there is no liquidity squeeze