richRoam: Liquidity Risk

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Showing posts with label Liquidity Risk. Show all posts
Showing posts with label Liquidity Risk. Show all posts

Monday, February 20, 2023

Liquidity Risk

February 20, 2023 0
 Liquidity refers to the ability to meet due obligations. It is the conversion of assets into cash within a year. Banks are highly leveraged institutions. When the bank is unable to liquidate its assets in case of need, it is running a liquidity risk. The liquid asset of a bank balance sheet comprises the following; Core deposits; constitute the demand...