RBA Says Banks Should Rely More On Private Markets For Liquidity Ahead! скачать в хорошем качестве

RBA Says Banks Should Rely More On Private Markets For Liquidity Ahead!

At the boring heart of banking is an essential requirement, access to liquidity. To function private banks need to manage their fund flows for payment settlements, lending and to meet regulatory requirements. At the heart of this financial plumbing in Australia is the way banks interact with the market operations of the RBA. Today we got an update on potentially important changes from Reserve Bank as Assistant Governor Chris Kent said Australia’s central bank will increase the price of all new open market operation repos and introduce a new seven-day tenor at its weekly auctions as it transitions to an “ample reserves” system for liquidity management. Kent last year flagged the RBA’s plans to shift to an “ample reserves” framework to ensure sufficient liquidity is available to keep the financial system running smoothly as billions of dollars of bonds it bought during the pandemic fall due. It is worth reflecting that the financial plumbing, should be boring, a bit like sewers really, in that when they work everything is fine, but when there is a crisis, just a a major flood in the sewer system, it can lead to a stink. In the case of the financial system, a problem could lead to payments unable to made, cash can’t be accessed and panic ensues, perhaps even leading to a bank run. The crux of the matter is The Reserve Bank prefers the private-sector banks to drive the demand and supply of cash in the system free of central bank distortion, though at a price they still can provide support in a crisis. It seems the Reserve Bank would rather calibrate the amount of cash in the system rather than overwhelm it for years to come. This smaller target approach sounds reasonable, at one level, let the banks who have funds available sell those to banks who need them, let the private markets do the heavy lifting, but in a peak of irony on the day Trump will announce his Tariffs as I discussed yesterday with Damien Klassen, the markets are roiled and risks are being priced back in. All up, we won’t really know if the changes the RBA has made will have a real impact, but given how fickle financial markets are especially in a crisis, this may be tested sooner rather than later if T day leads to market turmoil and a liquidity crisis. Timing as they say is everything! http://www.martinnorth.com/ Details of our one to one service are here: https://digitalfinanceanalytics.com/b... Go to the Walk The World Universe at https://walktheworld.com.au/ Find more at https://digitalfinanceanalytics.com/b... where you can subscribe to our research alerts Please consider supporting our work via Patreon:   / digitalfinanceanalytics   The full detailed set of post code data is available as a subscription service. Or make a one-off contribution to help cover our costs via PayPal at: https://www.paypal.me/MartinDFA We also can receive bitcoins at: 13zBL1oRib9VJu8Uc9zUGNhxKDBBgUpDN1 Please share this post to help to spread the word about the state of things.... Caveat Emptor! Note: this is NOT financial or property advice!! 🚨BEWARE OF SCAMMERS🚨 As there are accounts impersonating Walk The World in the comments on YouTube, note that our comments will have a distinguishable verified symbol. And remember that we will never message you asking you to give us money or talk to us on other platforms such as WhatsApp or Telegram