This is the case whether it is related to the future of trade agreements, job security—as economies become more automated—or threats from geopolitical tensions in many parts of the world. Actually, economic news in several advanced economies has recently been surprising people on the upside. At the same time, many feel like the world is becoming more and more uncertain. Canada is no exception.
In addition to the issue of which securities can be held as liquid assets, the other dimension to liquidity regulation is how many of these assets need to be held. In this regard, the Basel III liquidity framework makes certain assumptions about the likely calls on liquidity that a bank would experience during a 30-day period of stress.