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But I think it's very vulnerable because the little bit of the use of the liquidity of that huge amount of liquidity has been pushed back into the banking system hasn't gone out to be good investments.
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But the central bank would like to scale back their use of its liquidity facilities.
French banks do not appear to be making heavy use of the European Central Bank's back-up liquidity facilities and analysts agree that funding is in place for the rest of the year.
On the subject of what Lloyds Action Now describes as "secret loans" Lloyds said it had provided "thorough and appropriate information to shareholders about our liquidity position and that of HBOS including the general use of government-backed liquidity schemes".
"He used the liquidity of the food business to feed the small bank.
Hendershott & Riordan (2013) used data from the firms listed on the Deutsche Boerse DAX, where algorithm trading supplied 50%% of the liquidity.
Hence, market- and industry-wide shocks in liquidity will have pronounced effects of the liquidity of individual assets.
To identify those banks that are financially constrained, we use two indicators: (a) the liquidity position of the bank and (b) the growth rate opportunities in the bank's loan portfolio.
This is, of course, the liquidity trap.
The Bank's Governor, Sir Mervyn King, clearly finds micro theory useful:"The Bank of England's use of Klemperer auctions in our liquidity insurance operations is a marvellous application of theoretical economics to a practical problem of vital importance to financial markets".There is an important lesson about making cutting edge economics accessible here.
The most quoted example of emergence is the liquidity property of water.
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