Search: liquidity management
RBA Glossary definition for liquidity
liquidity – The capacity to sell an asset quickly without significantly affecting the price of that asset. Liquidity is also sometimes used to refer to assets that are highly liquid.
RBA Glossary definition for liquidity management
liquidity management – Activities within a financial institution to ensure that holdings of liquid assets (e.g. cash, bank deposits and other financial assets) are sufficient to meet its obligations as they fall due, including unexpected transactions.
Search Results
The 1820s
31 Dec 2001
RDP
2001-07
Within the first 11 years of the bank's operation it was struck by liquidity crises three times. ... The April 1826 foreign exchange crisis created a serious drain on the colony's liquidity.
https://www.rba.gov.au/publications/rdp/2001/2001-07/1820s.html
The Deregulated Era
31 Dec 2001
RDP
2001-07
In April 1998, the Reserve Bank introduced new prudential guidelines concerning banks' liquidity management. ... Responsibility for these arrangements now lies with APRA. Rather than relying solely on minimum liquidity ratios, the new arrangements
https://www.rba.gov.au/publications/rdp/2001/2001-07/deregulated-era.html
References
31 Dec 2001
RDP
2001-07
Diamond D and P Dybvig (1983), ‘Bank Runs, Deposit Insurance and Liquidity’, Journal of Political Economy, 91(3), pp 401–419. ... Reserve Bank of Australia (1995), Report and Financial Statements. Reserve Bank of Australia (1998), Liquidity
https://www.rba.gov.au/publications/rdp/2001/2001-07/references.html
The Post-war Period
31 Dec 2001
RDP
2001-07
Several banks had virtually abandoned liquidity management and relied on the central bank for their day-to-day cash needs. ... This left the central bank to focus on cyclical and last-resort liquidity.
https://www.rba.gov.au/publications/rdp/2001/2001-07/post-war-period.html
The 1930s Depression
31 Dec 2001
RDP
2001-07
The bank, therefore, had sufficient resources to provide a considerable injection of liquidity into the Government Savings Bank. ... Statements by the bank's management affirming the bank's soundness were sufficient to stop the run.
https://www.rba.gov.au/publications/rdp/2001/2001-07/1930s-depression.html
The 1970s
31 Dec 2001
RDP
2001-07
The Reserve Bank would stand behind any bank that provided liquidity to troubled building societies. ... to obtain liquidity for the society through a process of compulsory loans from other building societies.
https://www.rba.gov.au/publications/rdp/2001/2001-07/1970s.html
The 1840s Depression
31 Dec 2001
RDP
2001-07
Severe drought in 1838–1840 necessitated wheat imports and payment for this drained liquidity from the colonies. ... The Governor was president of the bank, while management was vested in trustees appointed by the Governor.
https://www.rba.gov.au/publications/rdp/2001/2001-07/1840s-depression.html
The 1890s Depression
31 Dec 2001
RDP
2001-07
The expansion in liquidity also allowed the banks to move coin to meet depositors' demands in other colonies. ... This generated a brief liquidity squeeze. The Queensland Government's response to these events included three measures.
https://www.rba.gov.au/publications/rdp/2001/2001-07/1890s-depression.html
Theoretical Approaches to Lender-of-last-resort Policy
31 Dec 2001
RDP
2001-07
Therefore, liquidity support should be provided to the market, with the market then allocating the liquidity. ... Bagehot argued that the lender of last resort should allay depositors' apprehension by publicly declaring that liquidity would be available.
https://www.rba.gov.au/publications/rdp/2001/2001-07/theoretical-approaches-to-lender-of-last-resort-policy.html