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Liquidity Crunch

All articles tagged with #liquidity crunch

finance2 years ago•1 min saved

China Regulators Investigate Record-Breaking 50% Liquidity Stress

Chinese financial regulators are investigating a liquidity crunch at the end of October that caused short-term money rates to surge to as high as 50%. The China Foreign Exchange Trade System (CFETS) has asked institutions to explain why they borrowed at such high rates. The surge in rates was attributed to a month-end scramble for cash and a flood of government bond sales, which created unusual liquidity stress. Some analysts believe that authorities may have wanted to keep yuan liquidity tight to prevent the currency from sliding against the US dollar.

via Reuters|

#china #finance #government-bonds

cryptocurrency2 years ago•2 min saved

Debt ceiling standoff threatens Bitcoin and US dollar stability.

Bitcoin's price may drop to $20,000 in Q3 due to a potential liquidity crisis triggered by the US Treasury Department's plan to raise the debt ceiling, warns risk management firm Penso Advisors. The Treasury's cash pile could increase from $95 billion in May to $600 billion by the end of Q3, leading to a sudden drain of liquidity that could negatively affect risk markets like equities, credit, and cryptocurrencies. Independent market analysts predict that Bitcoin's price will remain rangebound between $20,000 to $30,000, with a possible correction towards the 200-day EMA near $25,000 if the Fed hikes by 25 basis points in June.

via Cointelegraph|

#bitcoin #cryptocurrency #liquidity-crunch

finance2 years ago•1 min saved

"Banking Crisis Continues: First Republic Collapse Triggers Sell-Off and Fear for Small Banks"

The collapse of First Republic Bank, the third major casualty of the biggest crisis to hit the U.S. banking sector since 2008, has sparked a sell-off in shares of several regional lenders. The KBW Regional Banking Index was down 1.9% on Monday, while shares of Citizens Financial Group, PNC Financial Services Group, Truist Financial Corp, and U.S. Bancorp fell between 1.2% and 7%. JPMorgan Chase & Co will pay $10.6 billion to the U.S. Federal Deposit Insurance Corp for most of the failed bank's assets. Mid-cap banks are also facing a massive challenge due to aggressive monetary policy tightening by the U.S. Federal Reserve.

via Reuters|

#finance #first-republic-bank #jpmorgan-chase

finance2 years ago•2 min saved

First Republic Bank's Deposit Flight Sends Shares Plunging.

First Republic Bank faces a tough challenge to recover its business after losing over half of its deposits, with shares dropping 20% in premarket trading. The bank reported a more than $100 billion plunge in deposits in the first quarter, following the biggest crisis to hit the banking sector since 2008. Analysts expect challenges to extend through the year after two US bank failures last month created a liquidity crunch at a slew of regional lenders. The bank plans to shrink its balance sheet and cut expenses by cutting executive compensation, paring back office space, and laying off 20%-25% of employees in the second quarter.

via Reuters.com|

#banking-sector #deposit-flight #finance