I have been talking extensively about the LCR which is now at 100%, which puts a burden on banks because they cannot use these high quality liquid assets due to the regulation.
The Fed now announced they would ease these liquidity rules to about 85%. This is a huge drop in liquidity ratio. Since these banks now have more liquidity, they will probably start using it in the economy (for example loans). This would be good for stocks (especially foreign banks) and inflation.
The Fed now announced they would ease these liquidity rules to about 85%. This is a huge drop in liquidity ratio. Since these banks now have more liquidity, they will probably start using it in the economy (for example loans). This would be good for stocks (especially foreign banks) and inflation.
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