Liquiditätsgefälle

English translation: cash reserve shortage

GLOSSARY ENTRY (DERIVED FROM QUESTION BELOW)
German term or phrase:Liquiditätsgefälle
English translation:cash reserve shortage
Entered by: Maureen Holm, J.D., LL.M.

20:20 Oct 7, 2003
German to English translations [PRO]
Bus/Financial - Economics
German term or phrase: Liquiditätsgefälle
Term itself is just heading. Here is context:

Eine fehlende oder von der Bankenaufsicht kaum kontrollierte Liquiditätsreserve der Geschäftsbanken führte zu überraschenden Insolvenzen mitunter angesehener Bankhäuser und zu einem knappheitsbedingt hohen Niveau an Kreditzinsen.
Maureen Holm, J.D., LL.M.
United States
Local time: 09:43
liquidity trap
Explanation:
That's a big buzz word now.

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Note added at 3 mins (2003-10-07 20:23:54 GMT)
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Here\'s the idea:
It\'s usually possible to fuel the economy by lowering interest rates, which encourages consumer spending. BUT if the interest rate ever reaches 0% that strategy will no longer be available.

--------------------------------------------------
Note added at 6 mins (2003-10-07 20:26:51 GMT)
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On second thought, looking at your context, I think it just means \"shortage of capital\" or \"tight capital\"

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Note added at 10 mins (2003-10-07 20:31:37 GMT)
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On third thought, for banking, I\'d go with \"shortage of cash reserves\":

Although officially-declared bank failures were down for 1991, the figure of 127 banks that were \"resolved\" (either closed, forced to be sold to other banks, or given financial assistance) by the FDIC reflected the agency\'s shortage of cash reserves. On November 24, 1991, the late William Taylor, the then-new chairman of the FDIC, acknowledged that federal regulators had been forced to move more slowly in seizing weak banks, particularly larger ones, because of the depletion of the Bank Insurance Fund. A better indication of the growing caseload facing regulators was revealed by the growth in the total value of assets on the problem bank list, which rose to a record-high $486.9 billion by the end of September, 1991, up from $404.2 billion the previous March. By the end of 1991, the asset value total for problem banks had rocketed upward again -- to $611.1 billion. It clearly appeared that the FDIC was finding a number of larger banks in increasing distress, but had to await congressional approval of expanded borrowing authority to obtain sufficient resources to deal with them.

Selected response from:

William Stein
Costa Rica
Local time: 07:43
Grading comment
4 KudoZ points were awarded for this answer



Summary of answers provided
4 +1liquidity trap
William Stein
4liquidity crisis
Deborah Shannon
4 -1liquidity differential
Kim Metzger
3liquidity gap
zhdim


  

Answers


2 mins   confidence: Answerer confidence 4/5Answerer confidence 4/5 peer agreement (net): -1
Liquiditätsgefälle
liquidity differential


Explanation:
Hamblock


    Gro�w�rterbuch Wirtschaftsenglish - Hamblock/Wessels
Kim Metzger
Mexico
Local time: 07:43
Native speaker of: Native in EnglishEnglish
PRO pts in category: 24

Peer comments on this answer (and responses from the answerer)
disagree  Ralf Lemster: This would work when comparing the liquidity of different markets, but not in this context
1 hr
Login to enter a peer comment (or grade)

1 min   confidence: Answerer confidence 4/5Answerer confidence 4/5 peer agreement (net): +1
Liquiditätsgefälle
liquidity trap


Explanation:
That's a big buzz word now.

--------------------------------------------------
Note added at 3 mins (2003-10-07 20:23:54 GMT)
--------------------------------------------------

Here\'s the idea:
It\'s usually possible to fuel the economy by lowering interest rates, which encourages consumer spending. BUT if the interest rate ever reaches 0% that strategy will no longer be available.

--------------------------------------------------
Note added at 6 mins (2003-10-07 20:26:51 GMT)
--------------------------------------------------

On second thought, looking at your context, I think it just means \"shortage of capital\" or \"tight capital\"

--------------------------------------------------
Note added at 10 mins (2003-10-07 20:31:37 GMT)
--------------------------------------------------

On third thought, for banking, I\'d go with \"shortage of cash reserves\":

Although officially-declared bank failures were down for 1991, the figure of 127 banks that were \"resolved\" (either closed, forced to be sold to other banks, or given financial assistance) by the FDIC reflected the agency\'s shortage of cash reserves. On November 24, 1991, the late William Taylor, the then-new chairman of the FDIC, acknowledged that federal regulators had been forced to move more slowly in seizing weak banks, particularly larger ones, because of the depletion of the Bank Insurance Fund. A better indication of the growing caseload facing regulators was revealed by the growth in the total value of assets on the problem bank list, which rose to a record-high $486.9 billion by the end of September, 1991, up from $404.2 billion the previous March. By the end of 1991, the asset value total for problem banks had rocketed upward again -- to $611.1 billion. It clearly appeared that the FDIC was finding a number of larger banks in increasing distress, but had to await congressional approval of expanded borrowing authority to obtain sufficient resources to deal with them.



William Stein
Costa Rica
Local time: 07:43
Native speaker of: Native in EnglishEnglish
PRO pts in category: 8

Peer comments on this answer (and responses from the answerer)
agree  Ralf Lemster: Yep, fits the context best, methinks
1 hr
Login to enter a peer comment (or grade)

1 hr   confidence: Answerer confidence 4/5Answerer confidence 4/5
Liquiditätsgefälle
liquidity crisis


Explanation:
"Another reason banks are thoroughly regulated is that ultimately, no government can allow the banking system to fail. There is almost always a lender of last resort - in the event of a liquidity crisis (where short term obligations exceed short term assets) some element of government will step in to lend banks enough money to avoid bankruptcy."


    Reference: http://www.wikipedia.org/wiki/Bank
Deborah Shannon
Germany
Local time: 14:43
Works in field
Native speaker of: English
PRO pts in category: 8
Login to enter a peer comment (or grade)

7 hrs   confidence: Answerer confidence 3/5Answerer confidence 3/5
Liquiditätsgefälle
liquidity gap


Explanation:
Another possibility...

[PDF]100/Banking ops + RA 02
... The liquidity gap is typically defined as the difference between net liquid assets and volatile liabilities, where if the former exceed the latter the gap ...
www.londonexternal.ac.uk/studentarea/lse/lse_pdf/examiners_... 100/100_ZA_Banking_ops_02.pdf

Legal Risk Measurement
... The most basic measure of a firm's liquidity risk is the liquidity gap. ... A negative liquidity gap value indicates possible future liquidity problems. ...
forbin.mit.edu/FinancialRisk/ LiquidityRiskMeasurement.jsp

zhdim
Native speaker of: Native in EnglishEnglish
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