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DatabankJanuary 25 2012

Latam banks lead the liquidity league

Latin American banks dominate the rankings for deposits with the central bank, providing large liquidity cushions in their countries if needed.
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Half of the 10 countries with the highest proportion of central bank deposits, according to The Banker's data, are in Latin America, suggesting very conservative liquidity management in the region.

Commercial banks’ deposits with the central bank are traditionally measured against customer deposits held by the commercial banks themselves. This gives an indication of how much surplus cash commercial banks have with which to meet the withdrawal of funding in the event of a liquidity squeeze.

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