Colombian Banks Urge Central Bank to Ease Liquidity Crunch
Colombia’s banking sector has asked the country’s central bank to take measures to address the liquidity shortage that has affected the financial system amid lower-than-expected government spending and compliance with international regulatory framework Basel III, which strengthens bank risk management. Liquidity Squeeze and Interest Rates According to the Colombian banking association Asobancaria, the liquidity squeeze in the financial system is due to the government’s slower budgetary spending and higher tax…