Liquidity Crisis
Businesses in Bangladesh hit by cash supply drought due to withdrawal cap
Businesses in Bangladesh are facing a liquidity crunch as the central bank has capped the withdrawal of cash from banks at Tk 2 lakh amidst uncertainty in the country following the fall of the Sheikh Hasin-led government, a media report said on Monday. The Bangladesh Bank set a cash withdrawal limit of Tk 2 lakh (Rs 1.42 lakh approximately) per account on Saturday, increasing it from the Tk 1 lakh announced earlier. The central bank decided this due to security concerns as police are yet to return to work fully, following the clashes between police and students during the widespread protests against Hasina's Awami League-led government over a controversial quota system in jobs. Interim Finance and Planning Adviser Salehuddin Ahmed on Sunday also said that the limit on cash withdrawals was required given the current situation. Businesses, especially those mainly dealing with cash transactions, said they would be in a tough situation if the cash crisis lingers and restrictions remain
 "Businesses in Bangladesh hit by cash supply drought due to withdrawal cap")
RBI proposes to tighten banks' LCR norms, releases draft guidelines
Additional 5% 'run-off' factor imposed on retail deposits in view of proliferation of digital banking
 "RBI proposes to tighten banks' LCR norms, releases draft guidelines")
Monetary policy: Review of liquidity ratio framework for banks on the cards
Securities that are eligible for the statutory liquidity ratio like central and state government bonds are reckoned as HQLA for the purpose of calculating LCR. Banks have to maintain 100 per cent LCR
 "Monetary policy: Review of liquidity ratio framework for banks on the cards")
Where TMFs score: Transparent, low on credit risk and cost-efficient
FMPs don't face the issue of liquidity management but have higher costs
 "Where TMFs score: Transparent, low on credit risk and cost-efficient")
RBI conducts 2 VRR auctions to infuse liquidity into banking system
The liquidity deficit in the system widened to Rs 1.96 trillion on Sunday
 "RBI conducts 2 VRR auctions to infuse liquidity into banking system")
Amid widening deficit, RBI may pump in liquidity via open market operations
Market participants said that if the government refrains from spending, the central bank might resort to other measures to infuse liquidity apart from variable rate repo auctions
 "Amid widening deficit, RBI may pump in liquidity via open market operations")
India, China banks under pressure from different liquidity stories
The liquidity drought may be deliberate. Unlike Beijing, New Delhi has every reason to be sanguine about growth
 "India, China banks under pressure from different liquidity stories")
Banks bid 2.5 times at Rs 4.75 trn against notified amount at VRR auction
Bids totaling 2.7 times the notified amount were received at VRR auction on December 15
 "Banks bid 2.5 times at Rs 4.75 trn against notified amount at VRR auction")
Liquidity deficit widens to Rs 2 trn, on back of advance tax outflows
CD issuances in December highest in this financial year
 "Liquidity deficit widens to Rs 2 trn, on back of advance tax outflows")
Worst of liquidity crunch may be over, VRR, govt spending to lower deficit
VRR auctions, govt spending likely to help ease situation
 "Worst of liquidity crunch may be over, VRR, govt spending to lower deficit")
Banking liquidity deficit at 5-yr high, to narrow next week: Economists
The deficit was the highest since Dec 26, 2018, when it had hit Rs 1.86 trillion, according to economists
 "Banking liquidity deficit at 5-yr high, to narrow next week: Economists")
Fundraising through corporate bonds decline in October, shows data
According to data from the Prime database, companies and banks raised Rs 23,797 crore as of October 24, compared to Rs 72,941 crore in September
 "Fundraising through corporate bonds decline in October, shows data")
Expect status quo on rate and no change in stance
As the festival season approaches, followed by elections, state and national, there will be pressure on liquidity since cash with the public will rise
 "Expect status quo on rate and no change in stance")
FSDC discusses need for more early warning indicators for economy
Amid banking crisis in West, FM says ensuring financial stability is shared responsibility of all regulators
 "FSDC discusses need for more early warning indicators for economy")
Indian banks immune from liquidity crisis in West: Govt officials
Government monitoring developments in the West closely, says one official
 "Indian banks immune from liquidity crisis in West: Govt officials")
Treasury Bill yields at multi-year high on near-term liquidity fears
Yields across both securities rose 7-8 basis points over the previous week's auction
 "Treasury Bill yields at multi-year high on near-term liquidity fears")
Listed firms managing liquidity challenges well, says India Ratings
Given the tightening liquidity conditions and higher cost of borrowings, corporates with a weak credit profile are likely to tap a loan against shares facility to meet their funding requirements
 "Listed firms managing liquidity challenges well, says India Ratings")
Top Headlines: Starlink services in India, partial treatment to EV makers
Start-ups manufacturing electric two- and three-wheelers have alleged they are not getting subsidies under the second phase of the FAME II scheme
 "Top Headlines: Starlink services in India, partial treatment to EV makers")
China hits 'liquidity trap' as low lending rates fail to spur bank loans
China's Central bank data showed a sharp slowdown in aggregate financing, a broad measure of credit, in July, as new loans and corporate bond issuance weakened
 "China hits 'liquidity trap' as low lending rates fail to spur bank loans")
A year of caution
Liquidity tightening will affect financial assets
 "A year of caution")
