BRASILIA, March 20 Liquidity risks to Brazilian
banks should remain stable in the first half of 2014 despite a
slight increase in the previous six months, central bank
director Anthero Meirelles said on Thursday.
Liquidity risks to the system increased slightly in the
second half of last year but remain very low, the central bank
said in a semiannual financial report released earlier on
Meirelles, who is the central bank's director of financial
supervision, said the rise in risk was due to a drop in the
value of domestic debt held by banks along with a drop in global
liquidity. Prices of Brazil's domestic debt have fallen due to
an increase in the central bank's benchmark Selic interest rate.
(Reporting by Alonso Soto; Editing by James Dalgleish)