Liquidity risk

The risk that the credit institution becomes unable to fulfil its payment obligations at any time. A credit institution can show its liquidity position by comparing its payment obligations and incoming payments. A liquidity risk may arise due to an incongruence of incoming payments and outgoing payments. Liquidity risks can be subdivided into maturity risk (the risk of delayed repayment), withdrawal risk (the risk of unexpectedly high outflows), structural liquidity risk (risks from follow-up financing) and market liquidity risk.

Term-Nr.: 544

German: Liquiditätsrisiko (514)

Source: FMA AT m. e. E., 30.10.2018

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