Liquidity or profitability: How retail investors can shape liquidity risk models in times of high interest rates
Publication typeWhite paper
Publication Number of pages12
MetadataShow full item record
AbstractThe great success of the one-year “Staatsbon” or government bond was caused by the low deposit rates at Belgian banks and the reduction in withholding tax (from 30% to 15%). This forced banks to revise their deposit rates and give up profitability, or to retain the low rates and lose liquidity. Investor demand for high-interest, fixed-income instruments means that banks need to readjust their risk models and compete with sovereign and private sector alternatives.
Knowledge Domain/IndustryAccounting & Finance
Special Industries : Financial Services Management