liquidity excess
[lɪˈkwɪdɪti ˈɛksɛs]
nounpl: liquidity excesses
excesso de liquidez
1. A financial condition where a person, company, or financial institution has more liquid assets or cash reserves than required for immediate operational needs or regulatory requirements
The bank's liquidity excess allowed it to offer competitive interest rates to new customers.
O excesso de liquidez do banco permitiu que oferecesse taxas de juros competitivas aos novos clientes.
2. An oversupply of money in the financial system relative to the demand for credit, typically resulting in lower interest rates
The central bank's quantitative easing program created liquidity excess in the market.
O programa de flexibilização quantitativa do banco central criou excesso de liquidez no mercado.
3. A situation where an entity holds more cash or easily convertible assets than needed for normal business operations, potentially reducing profitability
Despite the liquidity excess, the company's return on assets remained modest.
Apesar do excesso de liquidez, o retorno sobre ativos da empresa permaneceu modesto.
In Brazilian and Portuguese financial markets, 'excesso de liquidez' is a technical term commonly used by economists, bankers, and financial analysts when discussing monetary policy impacts and market conditions. The term gained particular prominence during post-2008 financial crisis discussions and quantitative easing periods, reflecting global economic concerns about inflation and asset bubbles resulting from excess money supply.
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