1.   It provides the breadth and depth of financial resources required to enable banks to adjust their liquidity positions with relative ease.

2.   Therefore there are benefits to both liquid and illiquid banks in using the money market to adjust liquidity positions near to its ideal.

3.   Net inflows or outflows clearly determine the liquidity position of the banking system on a day to day basis.

4.   The Bank makes an estimate of what the liquidity position of the banking system will be on a day to day basis for several weeks ahead.

5.   Balanced against these positive factors are its tight liquidity position and higher than average exposure to the broad property related sector, it added.

6.   Bank Negara was seen constantly monitoring the liquidity position.

7.   Deposit rates are regularly reviewed based on market forces and liquidity position.

8.   However, RAM said Mayban has a moderate liquidity position mitigated by strong support from its parent company Malayan Banking Bhd.

9.   It said the bank and all of its subsidiaries remained profitable and the balance sheet of the group, capital adequacy and liquidity positions were sound.