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Have banks been more willing to look at a company's fundamentals and prospects, underneath any short-term liquidity difficulties?
Separately, the Icelandic government said that it had taken control of Glitnir, one of the largest lenders in the country, after it encountered liquidity difficulties.
The devaluation of 1981 and the liquidity difficulties of 1982 (fueled by the confidence crisis after the Malvinas war) resulted in a fall of output of around 5% in 1981 and 1982.
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GGP found that it simply could not roll over its debts because of a lack of liquidity.GGP's difficulties were not unexpected.
On the one hand, inventory holding effects could be stronger for illiquid stocks because liquidity providers face difficulties in offloading undesired inventories (Jiang et al. 2011, p. 475).
The Fed chairman, Ben S. Bernanke, has been trying to deal with the liquidity problems — the difficulty of businesses to line up short-term financing for normal activities — separately from the more basic problem of a possible recession.
It would also add to the depth of the market, which would help solve another difficulty: liquidity.It may seem odd to worry about liquidity when lots of Muslim countries are flush with cash, but many in Islamic finance put liquidity at the top of their watchlist.
To capture differences in market liquidity and fair valuation difficulties across types of financial instruments, we distinguish unrealized gains and losses that are recorded in net income versus recorded in other comprehensive income versus calculable using financial statement note disclosures.
They also have to believe that a country's difficulties concern liquidity (ie, they can repay debt eventually) not solvency (ie, they can't).In this case the markets felt starved of detail, and bothered by German insistence that private investors must bear part of the burden.
At worse, regulators have an incentive to label difficulties as liquidity problems, because the failure of a regulated bank suggests regulators failed to do their job.
"U.S. financial institutions currently do not face difficulty obtaining liquidity in short-term funding markets," the central bank said in a statement.
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