Bank Liquidity
/ˈbæŋk lɪˈkwɪdɪti/
Definitions
- (n.) The capacity of a bank to meet its financial obligations as they come due, without incurring unacceptable losses.
The regulator assessed the bank liquidity to ensure the institution could withstand sudden withdrawal demands.
- (n.) The availability of liquid assets that a bank holds to satisfy short-term liabilities.
Maintaining sufficient bank liquidity is essential for daily operational stability.
Forms
- bank liquidity
Related terms
See also
Commentary
Bank liquidity is a critical measure in banking law and financial regulation, emphasizing a bank's ability to convert assets into cash quickly to meet immediate demands without disrupting normal operations.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.