As of end-December 2020, the universal and commercial banking industry’s liquidity coverage ratio and net stable funding ratio remained higher than the minimum 100 percent threshold which indicate banks’ ability to fund requirements during short- and long-term liquidity shocks.
However, partly as a consequence of higher growth, the reduction in their quantitative easing programme, whereby the Fed is reducing its asset purchasing programme by $ per month, is having detrimental effects on many emerging markets and an unsettling effect on financial markets globally. Growth rates have slowed in major emerging markets such as China, India and Brazil.