Liquidity Risk. Diamond & Dybvig Model Game Theory. In many economic situations, agents returns depend on the actions of other agents. In such a situation, agents must think strategically. Economists use game theory to describe such situations.
HK Currency subject to sharp annual rises in demand.
Source: HKMA, CEIC
Large and Volatile Fluctuations in Transactions Volume and Available Reserves
Source: HKMA Website
-GUIDE TO HONG KONG MONETARY AND BANKING TERMS
See Page 5 & 10 of UBPR
Noncore Dependence is a key indicator of potential liquidity problems.
Fraction of illiquid assets which are being financed by
Noncore Dependence =