The phrase "a decrease in liquidity" is correct and usable in written English.
It can be used in financial contexts to describe a reduction in the availability of liquid assets or cash in a market or economy.
Example: "The recent economic downturn has led to a significant decrease in liquidity, making it harder for businesses to secure funding."
Alternatives: "a reduction in liquidity" or "a drop in liquidity".
"Regulatory-wise, this is pretty serious stuff, but they don't want to rock the boat, they don't want to cause market dislocations, they don't want a decrease in liquidity, and they don't want to risk regulatory arbitrage — which means activity moving from New York to London," said Mike Wittner, the head of commodity research at Société Générale in London.
Blankfein quickly became one of the highest-earning chief executives on Wall Street, and in 2008 owing to a decrease in market liquidity resulting from the global economic crisis he transformed Goldman Sachs from an investment bank into a bank holding company, thereby putting it under the respected regulatory oversight of the Federal Reserve and giving it access to Fed credit.
I don't actually know to what extent a decrease in the excess liquidity in the Euro System affects anything beyond sentiment (mopping up the excess water around an over-filled bath tub isn't the same as emptying the tub!) but sentiment would be affected.
These results are similar with the findings of Braggion et al ([2010]), they found decrease in liquidity ratios of banks after the M&A.
Our key findings, which are based on a unique supervisory German dataset, are that regulatory interventions robustly trigger decreases in liquidity creation, while capital support does not affect liquidity creation.
Responding to the situation, GM announced an effort to cough up an additional $5.0 billion in liquidity.
For the unconditional relation, size interaction terms decrease in magnitude, whereas liquidity interaction terms increase.
There is decrease in profitability, efficiency, liquidity, and leverage ratio(s) in most of the banks.
This is playing out in decreased liquidity, a measure of the number of buyers and sellers in a market, and weaker prices as speculators have reacted to this new source of uncertainty.
This finding is consistent with the findings on the NASDAQ reform of the 1990s, that enabled traders to compete with the dealers on liquidity, and resulted in a decrease of trading costs.
