The BIS hosts nine international organisations engaged in standard setting and the pursuit of financial stability through the Basel Process. The Basel Committee issued today the Basel III rules text, which presents the details of global regulatory standards on bank capital adequacy and liquidity agreed by the Governors and Heads of Supervision, and endorsed by the G20 Leaders at their November Seoul summit. The Committee also published the results of its comprehensive quantitative impact study QIS. The higher levels of capital, combined with a global liquidity framework, will significantly reduce the probability and severity of banking crises in the future. The rules text presents the details of the Basel III Framework, which covers both microprudential and macroprudential elements.
Effect of Liquidity on Financial Performance of Deposit Money Banks in Nigeria
Profitability Liquidity Essay Example
Liquidity ratios are an important class of financial metrics used to determine a debtor's ability to pay off current debt obligations without raising external capital. Liquidity ratios measure a company's ability to pay debt obligations and its margin of safety through the calculation of metrics including the current ratio , quick ratio , and operating cash flow ratio. With liquidity ratios, current liabilities are most often analyzed in relation to liquid assets to evaluate the ability to cover short-term debts and obligations in case of an emergency. Liquidity is the ability to convert assets into cash quickly and cheaply. Liquidity ratios are most useful when they are used in comparative form.
liquidity and profitability
The coronavirus crisis in the United States—and the associated business closures, event cancellations, and work-from-home policies—triggered a deep economic downturn of uncertain duration. The steps that have been taken by federal, state, and local officials to mitigate the spread of the virus will limit spending and hurt the incomes of businesses and households, leading to a recession. It also wants to do what it can to limit the permanent damage to the economy so that when the pandemic recedes, the economy can grow again, and supply goods and services to meet demand.
The COVID pandemic is already ushering in a host of challenges to US industrial manufacturers, especially those that depend on workers whose jobs cannot be carried out remotely. Some major industrial companies have closed facilities and are mulling the extent of layoffs to help curb the spread of the virus, as well as for economic reasons. Clearly, the manufacturing sector, which employs some 13 million workers in the US, is poised to be hit hard during this outbreak, primarily for two reasons: First, many manufacturing jobs are on-site and cannot be carried out remotely. Second, slowed economic activity has reduced demand for industrial products in the US and globally.