Federal regulators have begun exploring a new method of financial modeling, called agent-based modeling, which inches them closer to an optimal understanding of the true risk within the banking sector. The only thing is that agent-based modeling still doesn’t address the core problem within a financial crisis: disorderly liquidation ofRead More
Post Tagged with: "liquidity"
Liquidity has moved further and further up banking executives’ agendas thanks to the growing industry focus as well as regulatory demands for more liquidity to be available in banks. Following the 2008 crash, liquidity has established itself as a risk concern for banks like never before – the failure ofRead More
$30,000,000,000,000 – This huge figure is the estimated additional liquidity financial institutions worldwide will need if the current proposal by the International Organisation of Securities Commissions (IOSCO) and the Basel Committee on Banking Supervision (BCBS) on margin requirements for non-centrally-cleared derivatives were to be implemented. The estimate was calculated byRead More