Liquidity risk

Turkey's Central Bank on Jan. 20 said it will distribute accumulated contingent reserves with annual profit, excluding last year's.

The decision came at its top huddle in the capital Ankara where stakeholders gathered to discuss and vote on the 2019 profit distribution.

The Turkish central bank said on Nov. 6 some 5.3 billion lira ($1.37 billion) of lira liquidity will be withdrawn from the market and some $1.4 billion of dollar liquidity provided to banks under a change in reserve requirements. 

The Central Bank has lowered its reserve option coefficient, a move that will provide approximately $620 million in liquidity to Turkey's financial system.
According to a statement from the Bank issued on Oct. 31, the coefficients for the second, third and fourth tranches of the foreign exchange facility of the Reserve Option Mechanism have been decreased by 0.2 points.        

By Ben Moshinsky

The Bank of England will assess the danger from a shortage of market liquidity as it warned of threats to financial stability from events such as the crisis in Greece.

By Marcus Bensasson & Christos Ziotis

Greece must fulfill its agreement with its creditors ?as soon as possible? to alleviate the liquidity squeeze and higher funding costs of its lenders, Bank of Greece Governor Yannis Stournaras said.

Liquidity risks are heightened for all Bulgarian banks following two bank runs in quick succession, rating agency Fitch said Wednesday.

In a message posted on its website, Fitch stresses that "corporate governance problems at domestically owned companies" were highlighted by events at the two largest Bulgarian-owned banks.

By Yiannis Papadoyiannis

Greek lenders drew liquidity of about 50.7 billion euros from the European Central Bank in May, compared with 135 billion euros in June 2012. This cash flow is meant to cover the gap between deposits (at 161 billion euros in April) and loans (215 billion euros) created by the massive depletion of bank accounts due to the economic crisis.