Ewart S Williams: Stimulating domestic capital in the energy sector Address by Mr Ewart S Williams, Governor of the Central Bank of Trinidad and Tobago, at the Trinidad and Tobago energy conference, Port-of-Spain, 8 February 2011.
We will continue to examine the topic of liquidity with a focus on cross-border aspects of liquidity supervision. While liquidity risk cannot be mitigated with capital, capital is itself a form of liquidity since, unlike other liabilities, it does not have to be repaid. Furthermore, a strong capital buffer enhances a bank’s creditworthiness and, from the market’s perspective, reduces its counterparty risk.