Liquidity Support
/ˈlɪkwɪdəti səˈpɔːrt/
Definitions
- (n.) Financial assistance provided typically by a central bank or government entity to ensure an institution or market has sufficient liquid assets to meet short-term obligations.
The central bank extended liquidity support to the failing bank during the crisis.
- (n.) Legal or contractual provisions that guarantee or facilitate access to liquid assets to fulfill payment or settlement requirements.
The loan agreement included liquidity support clauses to protect creditors.
Forms
- liquidity support
Related terms
See also
Commentary
Liquidity support often forms a critical part of emergency financial policies and contractual safeguards; clarity in drafting is essential to define scope, duration, and triggering events for support.
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.