On the other hand, the provision of ample liquidity to banks and primary dealers is no panacea.
The yield on longer-term debt has been lower than we expected, creating ample liquidity for global growth.
Regardless of the CCAR results, Ally continues to have strong capital levels and ample liquidity to support its automotive finance operations.
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Bank of Japan Governor Masaaki Shirakawa reiterated that the central bank would continue to provide ample liquidity to ensure market stability.
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But offering ample liquidity support to banks gets you only so far.
There is ample liquidity out there and I think, for bond investors in particular, the low interest rate investor will try to find yield elsewhere.
It also keeps its interest rate and market risks in its asset and liability balances within set ranges, while concurrently enabling ample liquidity and capital levels to fuel growth.
So the ample liquidity held by big banks simply reflect the depressed times we live in, where banks are frequently reluctant to make loans to the real economy and deplete their liquid reserves.
Today, concerns about capital, asset quality, and credit risk continue to limit the willingness of many intermediaries to extend credit, even when liquidity is ample.
Jean-Claude Trichet, the ECB's president, tried to damp down even that concern, pointing out that banks could tap unlimited liquidity at the ECB and that they had ample collateral left to post in return.
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