Finance, Forex and Investments

When in the past has liquidity been important for commercial banks?

...and how in the past have banks increased their liquidity...some real world examples would be good please. Thanks

Public Comments

1. On April 5, 1933, Franklin Roosevelt ordered the confiscation of gold from safe deposit boxes in the U.S. "I, Franklin D. Roosevelt, President of the United States of America, do declare that said national emergency still continues to exist and pursuant to said section to do hereby prohibit the hoarding gold coin, gold bullion, and gold certificates within the continental United States ... ...All persons are hereby required to deliver on or before May 1, 1933, to a Federal Reserve bank or a branch or agency thereof or to any member bank of the Federal Reserve System all gold coin, gold bullion, and gold certificates now owned by them or coming into their ownership on or before April 28, 1933, ..." Currency was given in exchange for the gold but, as I understand it, at a discounted rate to spot value of the metal.
2. normally central bank sets rules on how much capitalization a bank should have to enter into a certain level in banking, i.e. rural, savings and thrift, commercial and universal banking. Aside from which they have to monitor their NPL ratio, debt to equity, etc. on the liquidity issue, the central bank sets the percentage level of liquidity of a bank. These are to control the amount of money in circulation.