After crossing this critical
liquidity level, the Treasury Bonds sale or taking out a short-term debt is unprofitable for the non-profit organization.
The 1930s was a defining era in the thinking on
liquidity and regulation.
Importantly, non-bank asset-based lending is today the commanding mechanism, creating the
liquidity that drives both financial markets and economies.
Adequate
liquidity contingency planning is critical to the ongoing maintenance of the safety and soundness of any financial institution.
General American was fully capitalized to meet those obligations, but the unexpected volume of redemptions on some funding agreements created severe pressure on the company's
liquidity and its ability to convert the funds within the tight time frame.
Registrants should reference trends affecting
liquidity and capital resources, as well as prospective information affecting both short- and long-term sources of (5) and needs for capital (6).
Portfolio
liquidity results from many factors, including general financial market conditions and specific security features.
In addition, special industry lenders such as the Federal Home Loan Banks and corporate central credit unions serve as sources of
liquidity assistance for their member institutions; credit unions, in particular, elect to rely almost entirely on their corporate central credit unions for any
liquidity assistance rather than turn to the Federal Reserve.
used its $50 billion
liquidity portfolio to make dividend payments to investors.
