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In this paper, I show that the decline in household consumption during unemploy- ment spells depends on both liquid and illiquid asset positions. I also provide evidence that unemployment spells predict the withdrawal of illiquid assets, particularly when households have few liquid assets. Motivated by these findings, I embed endogenous unemployment risk in a two-asset heterogeneous-agent New Keynesian model. The model is consistent with the above evidence and provides a new propagation mecha- nism for aggregate shocks due to a ight-to-liquidity that occurs when unemployment risk rises. This mechanism implies that unemployment insurance plays an important role as an automatic stabilizer, particularly when monetary policy is constrained. [ABSTRACT FROM AUTHOR]

This paper studies the role of banks' branching networks in propagating the oil shocks. Banks that were exposed to the oil shocks through their operations in oil-concentrated counties experienced a liquidity drainage in the form of a declining amount of demand deposit inflow as well as an increasing percentage of troubled loans. Banks were forced to sell liquid assets, and contracted lending to small businesses and mortgage borrowers in counties that were not directly affected by the oil shocks. The effect is magnified when banks do not have strong community ties, but is mitigated if banks' branching network is sufficiently dispersed. I also find the decline in local credit supply cannot be completely offset by healthy competing banks' increased lending, providing fresh evidence from the perspective of bank competition. [ABSTRACT FROM AUTHOR]

French food and drink group Sill Entreprises has made a binding offer to purchase Unilever's Knorr liquid soups business in France. The financial details of the offer have not been disclosed, and Unilever has not commented on when a decision will be made. If the deal goes through, other Knorr products such as stock cubes and gravies will remain under Unilever's ownership. Sill Entreprises already operates in the French soups market and entered into a partnership with Unilever in 2022 to produce some of Knorr's liquid soups. Unilever has expressed its commitment to supporting Knorr, and Sill Entreprises believes the acquisition will help consolidate and develop its positions in the liquid soup market. [Extracted from the article]

We investigate how liquidity regulations affect banks by examining a dormant monetary policy tool that functions as a liquidity regulation. Our identification strategy uses a regression kink design that relies on the variation in a marginal high-quality liquid asset (HQLA) requirement around an exogenous threshold. We show that mandated increases in HQLA cause banks to reduce credit supply. Liquidity requirements also depress banks' profitability, though some of the regulatory costs are passed on to liability holders. We document a prudential benefit of liquidity requirements by showing that banks subject to a higher requirement before the financial crisis had lower odds of failure. [ABSTRACT FROM AUTHOR]

The trend in the world real interest rate for safe and liquid assets fluctuated close to 2 percent for more than a century, but has dropped significantly over the past three decades. This decline has been common among advanced economies, as trends in real interest rates across countries have converged over this period. It was driven by an increase in the convenience yield for safety and liquidity and by lower global economic growth. [ABSTRACT FROM AUTHOR]

Maintaining sufficient liquidity in the financial system is vital for financial stability. However, since returns on liquid assets are typically low, individual financial institutions may seek to hold fewer such assets, especially if they believe they can rely on other institutions for liquidity support. We examine whether state banks in the early 1900s took advantage of relatively high cash balances maintained by national banks, due to reserve requirements, to hold less cash themselves. We find that state banks did hold less cash in places where both state legal requirements were lower and national banks were more prevalent. [ABSTRACT FROM AUTHOR]

Leading up to 2014, U.S. banks increased their holdings of high-quality liquid assets (HQLA) in part to comply with the liquidity coverage ratio (LCR) requirement. However, once the requirement was met, some banks shifted the compositions of their HQLA portfolios. This raises the question: What is the optimal composition of a given quantity of HQLA? We use standard optimal portfolio theory to benchmark the ideal and find that a range of "optimal" HQLA portfolios is plausible depending on banks' risk tolerance. A highly risk averse (inclined) bank prefers a relatively large share of reserves (mortgage-backed securities). Of course, other factors interact with the LCR and influence banks' management of the composition of HQLA. We highlight several such factors, and show how the pattern of dispersion in the daily variance of banks' HQLA shares may be influenced by them. We also describe an important implication of the LCR for the Federal Reserve's longer-run implementation of monetary policy. [ABSTRACT FROM AUTHOR]

We study banks' post-crisis liquidity management. We construct time series of U.S. banks' holdings of high-quality liquid assets (HQLA) and examine how these assets have been managed in recent years to comply with the Liquidity Coverage Ratio (LCR) requirement. We find that, in becoming LCR compliant, banks initially ramped up their stock of reserve balances. However, once the requirement was met, some banks subsequently shifted the compositions of their liquid portfolios significantly. This raises the question: What drives the compositions of banks' HQLA? We show that a risk-return framework can account for a range of potential portfolio compositions depending on banks' tolerance for interest rate risk. And, our data indicate that banks have indeed adopted a range of portfolio compositions, with some components exhibiting a high degree of daily variance. These findings lead us to conclude that about half of large banks are largely focused on risk-return considerations in managing the compositions of their HQLA pools while the other half appear bound by other factors. We highlight the importance of our findings for both the transmission and implementation of monetary policy. [ABSTRACT FROM AUTHOR]

This paper examines the optimal design of and interaction between capital and liquidity regulations in a model characterized by fire sale externalities. In the model, banks can insure against potential liquidity shocks by hoarding sufficient precautionary liquid assets. However, it is never optimal to fully insure, so realized liquidity shocks trigger an asset fire sale. Banks, not internalizing the fire sale externality, overinvest in the risky asset and underinvest in the liquid asset in the unregulated competitive equilibrium. Capital requirements can lead to less severe fire sales by addressing the inefficiency and reducing risky assets--however, we show that banks respond to stricter capital requirements by decreasing their liquidity ratios. Anticipating this response, the regulator preemptively sets capital ratios at high levels. Ultimately, this interplay between banks and the regulator leads to inefficiently low levels of risky assets and liquidity. Macroprudential liquidity requirements that complement capital regulations, as in Basel III, restore constrained efficiency, improve financial stability and allow for a higher level of investment in risky assets. [ABSTRACT FROM AUTHOR]

We study the impact of shadow banking on optimal liquidity regulations in a DiamondDybvig maturity mismatch environment. A pecuniary externality arising out of the banks' access to private retrade renders competitive equilibrium inefficient. Shadow banking provides an outside option for banks, which adds a new constraint in the mechanism design problem that determines the optimal allocation. A tax on illiquid assets and a subsidy to the liquid asset similar to the payment of interest on reserves (IOR) constitute an optimal liquidity regulation policy in this economy. During expansions, i.e., when the return on illiquid assets is high, the threat of investors flocking out to shadow banking pins down optimal policy rates. These rates do not respond to business cycle fluctuations as long as the economy stays out of recession. In recessions, when the return on illiquid assets is low, optimal liquidity regulation policy becomes sensitive to the business cycle: both policy rates are reduced, with deeper discounts given in deeper recessions. In addition, when high aggregate demand for liquidity is anticipated, the IOR rate is reduced and, unless the shadow banking constraint binds, the tax rate on illiquid assets is increased. [ABSTRACT FROM AUTHOR]

The article reports on the developments in the wealth management industry. The liquid assets of affluent individuals in South Africa will rise at a compound annual rate of 6.9 percent in 2015. RBC Wealth Management will acquire the Latin America, Caribbean and African private banking arms of Coutts & Co. Clarus, an online portal for investors, was launched by Man Group PLC.

The article focuses on the impact of high debt payments on the smoothing of household consumption in the U.S. It mentions that the consumption smoothing behavior in the 1992 to 2005 waves of the Consumer Expenditure Survey was compared over the household debt service ratio (DSR). It states that identification of borrowing constrained households can be done using the DSR.

The article offers the author's insights on his study where he develops a model with transaction costs in a cash-in-advance economy. The author states that the model could help explain the observation made by the Rational Expectations Permanent Income Hypothesis (RE-PIH) on the marginal propensity to consume (MPC) out of income shocks. She also found that the model could solve demand for liquid assets and equity premium-related problems.

Focuses on capital sources in Singapore. Trade financing assistance offered by commercial banks; Reason for exempting banks from minimum cash balance and minimum liquid asset requirements on funds in Singapore dollars received from non-bank customers via foreign-currency swaps; Action taken by the Monetary Authority of Singapore to promote the growth of Singapore's capital market.

The article offers information on the Liquidity Coverage Ratio (LCR) which requires treatment of municipal bond as level 2A high quality liquid asset. Topics discussed include the concerns that LCR will affect bank profitability and risk and the capacity of local governments and states to borrow, the background on the issuance and application of LCR, and the expected increase on borrowing costs of municipalities and states due to reduction of bank holding demand caused by LCR.

The transaction will be funded through a combination of internal accruals and debt [ABSTRACT FROM AUTHOR]

The new circular will be effective from December 1 [ABSTRACT FROM AUTHOR]

RBI said this dispensation provides increased access to funds to the extent of Rs 1.49 lakh crore, and also qualifies as High-Quality Liquid Assets (HQLA) for the Liquidity Coverage ratio [ABSTRACT FROM AUTHOR]

The investments in overnight funds shall also be considered as liquid assets for the purpose of calculation of net worth of a clearing corporation [ABSTRACT FROM AUTHOR]

The article reports on the move of Toronto-Dominion Bank to enter into the U.S. wealth management market. The bank's head, Mike Pedersen, believes that there is a wealth opportunity in the nation as 92.6 million affluent individuals held 83% of the total liquid assets in the country. However , it notes that the bank faces competition from the nation's largest retail banks and brokerages.

The article reports on the development of the wealth market in Colombia. It cites a survey which reveals that the value of liquid assets held in the market was 33.4 billion U.S. dollars in 2011, making it one of the smallest markets in the region. It forecasts that the value will grow robustly during 2011-2015 at a compound annual growth rate (CAGR) of 9.7%. It says that the development owed to the presidency of Alvaro Uribe, which has led to profound improvements in security.

The article reports that Germany's wealth market is set to be overtaken by Great Britain in 2015. It mentions the affluent people in the British country who hold 75% of total liquid assets despite of its small wealth market. It also notes their respective 70% and 50% investment of liquid assets in deposits and bonds as well as in fixed income products.

The article offers a long-term positive outlook for the banking sector in Mexico in 2011. Among the factors that support the positive outlook for the sector are rapid decline in banks' holdings of liquid assets, strong short-term profitability and recovery of competition indicators. Some risks expected to affect profitability and growth by the end of 2010 and into 2011 include reduction in loan loss provisions, weak medium-term outlook for rapid loan growth and more strict regulation.

The article reports on the increasing high net worth individuals in Great Britain. In 2005 alone, the number of high net individuals reached 877,300, an indicator of the significant growth that the country is experiencing. Wealthy people hold 541.5 billion British pounds in total onshore liquid assets, breaking the 500 billion British pound barrier for the first time. By 2007, the number of high net worth individuals is expected to surpass one million barrier.

The article states that the number of individuals with more than E50,000 in onshore liquid assets in Germany will break through the 10 million barrier by 2009. Germany is currently home to more than 850,000 high net worth and over 7.2 million mass affluent individuals. While the total number of individuals with more than E50,000 in liquid assets declined by 14% in absolute terms between 2000 and 2002, the wealthy population has since been increasing. According to more than 80% of wealth managers from the German market that were interviewed by Datamonitor in a study, German clients are now demanding to know more about the management of their portfolio than they were two years ago.

The article states that the growing high net worth (HNW) population in Great Britain is demanding more ethical financial products and better service. The British worth HNW population grew by 12% in 2004, taking the number of wealthy individuals with more than GBP200,000 in liquid assets to over 916,000 and this number will continue to rise over the next few years. The issues of the environment and "responsible investing" are rising up the political and financial agenda. The current private fund investment managers hold quite meaningful amounts of key companies and the consolidation in the industry has made their corporate voting power even greater.

Reports on the increase in the number of high net worth (HNW) individuals in Great Britain as of November 2004. Capital preservation; Importance of the achievement of positive returns; Amount of liquid assets; Increase in household savings and investment balances in Great Britain in 2003.

Focuses on the retirement savings gap for British retirees. Number of high net worth retirees; Consideration of liquid assets; High-risk investments towards fixed income products.

The article reports that the Greek wealth market was cited as the worst performer in terms of growth of high net worth (HNW) liquid assets. According to Datamonitor's Global Wealth Markets Analytics, Greek wealth market is the worst performer among 63 countries from 2006 to 2011. It is forecasted that the Greek wealth market will further decrease in the period of 2012 to 2016 due to worsening macroeconomics and declining stock market capitalization.

The article reports on the growth of the wealth markets in Brazil, Russia, India and China (BRIC) in terms of liquid assets held by affluent individuals during 2006-2011. However, it is predicted that growth will slow slightly due to a worsening eurozone crisis and its impact on the global economy. Highlights of the historic wealth market trends in BRIC are discussed.

The article predicts that Russia will show significant growth in the years to 2016, driven by its oil and raw material exports, high oil prices and an emerging consumer segment. The growth is expected despite the overall uncertainty in both Western and Eastern Europe. Global wealth markets data shows that the value of liquid assets held by Russian millionaires is projected to rise to 330 billion dollars in 2016.

The article presents an outlook on the wealth management sector in Australia. It reveals that Westpac intended to increase its focus on wealth management. It also notes that many banks are focusing on wealth management due to the country's slow retail banking market. It predicts growth in the value of liquid assets held by Australia's affluent population between 2011 and 2015.

The article reports on the financial condition of the wealth management services industry in Great Britain in 2011. It provides an overview of the country's wealth market environment and the gap in its regional markets based on the limited coverage of local wealth managers and wealth management firms. It also notes its financial performance in the global market in terms of liquid assets held by high net worth (HNW) individuals in the country.

The article reports on the move of Falcon Private Bank to expand its business worldwide. It anticipates that the bank's strategy will result in growth and a stable future customer base due to U.S. tax pressures. It forecasts that the onshore three million U.S. dollars-plus liquid wealth band in the United Arab Emirates (UAE) will expand by 13% compounded annually to reach 29.4 billion U.S. dollars in onshore liquid assets by 2015.

The article reports on the increase of the number of individuals with more than 200,000 pounds in onshore liquid assets in 2008 in Great Britain. The number of high net worth individuals reached 877,300 in 2005, an indicator of the significant growth that the wealthy population is currently experiencing. Rich people hold 541.5 billion pounds in total onshore liquid assets.

A table forecasting the level of onshore liquid assets held by Belgo-Dutch from 2006-10 is presented.

The article focuses on the growth of the onshore liquid assets acquired by financially strong Belgo-Dutch people. It is estimated that the total assets will increase by 35% over the next few years. The total asset value may increase from E711 billion in 2006 to E902 billion in 2010. It represents a compound annual growth rate of 6.1%.

The article presents information about the growing rate of total retail liquid assets in China. Total savings and investments rate is likely to rise by 9.8% annually during 2005-2009. The annual growth rates across deposits, equities, bonds and collective investments sector were reported to be 9.9%, 10.5%, 8.3% and 13.7% respectively.

The article presents information about liquid assets among the Asian Pacific countries. In 2002, the total value of retail wealth reached to $10,824 billion across six Asian countries including Australia, New Zealand, Singapore, and Japan. With the totaling $8,839 billion, Japanese wealth assets directs those of Australia and New Zealand.

The article presents a lists of article related to financial services. These include "Wealth Management in Switzerland 2006" which tackles on the onshore liquid wealth of mass affluent and high net worth customers. "Alternative Investments for Private Clients 2006," which reports the findings of Datamonitor's Asset Management Market Leaders Survey 2006. "UCITS III barriers and opportunities in European Asset Management," records the adoption of the UCITS II fund structure.

The article reports on the economic forecast of retail liquid assets in China. Total savings and investments are expected to increase at a rate of 9.8% compounded annually over the 2005-2009 period. Deposits, bonds and collective investments will grow evenly, reflecting the underdeveloped nature of the investment environment with compound annual rates of 9.9%, 10.5%, 8.3% and 13.7% respectively.

Italian mass affluent individuals in the top wealth bracket account for the largest proportion of mass affluent liquid assets. In 2004 the group held 38 percent of all mass affluent liquid assets. The segment is forecasted to increase its total assets grow at a year on year rate of five percent by 2009.

The article discusses on the Italian mass affluent liquid asset in Italy. Italian mass affluent individuals have held 38% of all mass affluent liquid assets in 2004, which valued at E204.9 billion. It was forecasted to increase its total assets at a year on year rate of 5.0% at E261.0 billion overall by 2009.

A graph is presented depicting the total retail liquid assets of the four major cities in China for 2004.

The article reports that, despite accounting just 1.1% of residents in Hong Kong, China, people with over $1 million in liquid assets owned 31.4% of total liquid retail wealth. As wealth expands, the proportion of assets held relative to the proportion of people becomes bigger. For instance, people with over $3 million own 17.1% of total retail assets, yet account for just 0.2% of Hong Kong residents.

The article analyzes trends in wealth in Hong Kong from 1999 to 2004. In 2004, individuals with more than $1 million in liquid assets owned 31.4% of total liquid retail wealth. This number of people account only for 1.1% of Hong Kong residents. The proportion of assets held relative to proportion of people becomes larger when wealth increases.

The article reports that individuals in Hong Kong with more than $1 million in liquid assets have been increasing their wealth by seven percent annually, according to the Datamonitor document "Private Client Services in Hong Kong 2005." A graph is presented to show the total liquid wealth of persons in Hong Kong with over $1 million in liquid assets. The $1 million to $3 million group is the target of private client services.

The article reports on the growth of the wealth market in Hong Kong, China. One factor contributing to the growth is the share of wealth owned by those individuals with more than $1 million in liquid assets. The wealth amounted to $207 billion in 2004, a figure that has increased at a rate of 7.2 percent compounded annually since 1999.