Everything banks know about liquidity management: what it is, how to enhance it, and what benefits they can reap in the process.
Consequently, banks always try to reduce liquid assets as much as they can. However, if they do not have sufficient liquidity to meet the demands of their depositors, they risk experiencing a bank run – crowds of people withdraw their money in a panic. Most banks today try to forecast wha...
Market liquidity, ineconomicsor investing, refers to how quickly an asset can be sold without changing its price much or incurring high costs. The faster you can buy or sell an investment, the more liquid it is. Higher market liquidity means more buyers and sellers exist, so transactions can...
Liquidity risk management is a key factor in a bank’s ability to remain stable during economic downturns.
Engaging in asset/liability management (ALM):Asset/liability managementis a comprehensive approach to balancing the bank’s assets and liabilities in a way that minimizes liquidity risk. It involves coordinating lending, investment, funding, and pricing strategies to ensure the bank can meet its oblig...
bank liquidity 银行清偿能力,银行资产流动性 cash liquidity 现金流动性 liquidity limit 流动性极限,液性极限 liquidity ratio 流动比率,流动性比率,清偿能力比率 balance on liquidity 【经】 按清偿基础计算的国际收支差额 liquidity shortage 流动性不足 means of liquidity 灵活资金 liquidity basis 清偿基...
nounthe property of flowing easily nounbeing in cash or easily convertible to cash; debt paying ability Etymologies Sorry, no etymologies found. Support Help support Wordnik (and make this page ad-free) by adopting the wordliquidity.
is 2:1. It means, the company's cash and cash equivalents are twice that of current liabilities—the firm can easily pay off obligations. A quick ratio of 2.875:1 is again a sign of healthy financials. In the short run, the company is maintaining adequate amounts of liquid assets. A ...
Bankruptcy Defaulthas the meaning assigned to such term in Section 6.01. Servicing DefaultThe meaning assigned in Section 6.01 of the Servicing Agreement. Bank Defaultmeans (i) the refusal (which has not been retracted) of a Bank to make available its portion of any incurrence of Loans (includi...
Liquidity Bankmeans the Person or Persons who provide liquidity support to any Conduit Lender pursuant to a Liquidity Agreement in connection with the issuance by such Conduit Lender of Commercial Paper Notes. Liquidity Fundingmeans (a) a purchase made by any Committed Lender pursuant to its Liquidi...