Liquidity Management
/ˌlɪkwɪˈdɪti ˈmænɪdʒmənt/
Definitions
- (n.) The process by which financial institutions or businesses monitor and control their liquidity to ensure they can meet short-term obligations and maintain financial stability.
Effective liquidity management is essential for a bank to meet customer withdrawals without distress.
Forms
- liquidity management
Related terms
See also
Commentary
In legal drafting, clarity on liquidity management often relates to regulatory compliance and risk mitigation provisions in financial contracts or corporate policies.
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.