RBI's recent swap of $10 billion has calmed market participants' frayed nerves
The RBI has doubled the quantum of government securities it aims to purchase Rs to 400 billion rupees ($4.61 billion) on a review of current and evolving liquidity conditions
Sources privy to the development said that the company is actively streamlining its operations to address various challenges
Outstanding Certificate of Deposit issuances highest since 2012
Businesses in Bangladesh are facing a liquidity crunch as the central bank has capped the withdrawal of cash from banks at Tk 2 lakh amidst uncertainty in the country following the fall of the Sheikh Hasin-led government, a media report said on Monday. The Bangladesh Bank set a cash withdrawal limit of Tk 2 lakh (Rs 1.42 lakh approximately) per account on Saturday, increasing it from the Tk 1 lakh announced earlier. The central bank decided this due to security concerns as police are yet to return to work fully, following the clashes between police and students during the widespread protests against Hasina's Awami League-led government over a controversial quota system in jobs. Interim Finance and Planning Adviser Salehuddin Ahmed on Sunday also said that the limit on cash withdrawals was required given the current situation. Businesses, especially those mainly dealing with cash transactions, said they would be in a tough situation if the cash crisis lingers and restrictions remain
Additional 5% 'run-off' factor imposed on retail deposits in view of proliferation of digital banking
Securities that are eligible for the statutory liquidity ratio like central and state government bonds are reckoned as HQLA for the purpose of calculating LCR. Banks have to maintain 100 per cent LCR
FMPs don't face the issue of liquidity management but have higher costs
The liquidity deficit in the system widened to Rs 1.96 trillion on Sunday
Market participants said that if the government refrains from spending, the central bank might resort to other measures to infuse liquidity apart from variable rate repo auctions
The liquidity drought may be deliberate. Unlike Beijing, New Delhi has every reason to be sanguine about growth
Bids totaling 2.7 times the notified amount were received at VRR auction on December 15
CD issuances in December highest in this financial year
VRR auctions, govt spending likely to help ease situation
The deficit was the highest since Dec 26, 2018, when it had hit Rs 1.86 trillion, according to economists
According to data from the Prime database, companies and banks raised Rs 23,797 crore as of October 24, compared to Rs 72,941 crore in September
As the festival season approaches, followed by elections, state and national, there will be pressure on liquidity since cash with the public will rise
Amid banking crisis in West, FM says ensuring financial stability is shared responsibility of all regulators
Government monitoring developments in the West closely, says one official
Yields across both securities rose 7-8 basis points over the previous week's auction