Liquidity risk in banking sector

In banking parlance, liquidity is a financial institution's capacity to meet its obligations as they fall due without incurring losses. Liquidity risk is a risk to an institution's earnings, capital and reputation arising from its inability (real or perceived) to meet its contractual obligations in a timely manner without incurring...

ACU as the focal point of regional trade

It is learnt from media reports that Asian Clearing Union (ACU) has recently endorsed Japanese yen (JPY) as acceptable currency for net settlement of transactions carried out by its member countries. Previously, USD and Euro were only two acceptable currencies for net settlement of intra-regional trade. However, Euro was suspended...