Clients meet with a Shearson financial consultant to outline such investment criteria as their expected rate of return, liquidity requirements and risk tolerance.
If a bank cannot meet these liquidity requirements, it will need to borrow money in the interbank market to cover the shortfall.
Some banks, on the other hand, have excess liquid assets above and beyond the liquidity requirements.
The short-term borrowings are used to meet liquidity requirements.
A second set of indicators focuses on the short-term liquidity requirements of the country with respect to its debt service obligations.
It's not just buyers who find their options drastically narrowed by liquidity requirements.
The result is that most banks now try to forecast their liquidity requirements and maintain emergency standby credit lines at other banks.
Moreover, they will be supplemented, in due course, with new liquidity requirements, reducing the threat of banks going under because they cannot finance themselves.
We'll also require these financial firms to meet stronger capital and liquidity requirements and observe greater constraints on their risky behavior.
The same applies to liquidity requirements.