funding liquidity risk

funding liquidity risk
The risk of not having access to sufficient funds to make a payment on time.
Syn: structural liquidity risk

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  • funding liquidity risk — or funding risk The potential that an institution will be unable to meet its obligations as they come due because of an inability to liquidate a sufficient quantity of assets or to obtain a sufficient quantity of new liabilities. American Banker… …   Financial and business terms

  • liquidity risk — (1) For a financial institution, the risk that not enough cash will be generated from either assets or liabilities to meet cash requirements. For a bank, cash requirements are primarily made up of deposit withdrawals or contractual loan fundings …   Financial and business terms

  • Liquidity risk — In finance, liquidity risk is the risk that a given security or asset cannot be traded quickly enough in the market to prevent a loss (or make the required profit).Types of Liquidity Risk#Asset Liquidity An asset cannot be sold due to lack of… …   Wikipedia

  • Liquidity risk —   The risk of non availability of sufficient liquidity to meet cash flow requirements on a certain date in the future including today (having sufficient available or inflow of funds to accommodate outflow of funds). Also known as funding risk.… …   International financial encyclopaedia

  • internal liquidity risk — A term defined by the Federal Reserve. Internal liquidity risk relates largely to funding problems arising from unfavorable changes in the perception of an institution in its various markets: local, regional, national, or international. See bank… …   Financial and business terms

  • external liquidity risk — A term defined by the Federal Reserve. The risk that a bank will experience funding problems as a result of factors outside of its direct control. The Federal Reserve defines three types of external liquidity risk. These are geographic (such as… …   Financial and business terms

  • cyclical liquidity risk — A type of systemic liquidity risk. The risk of funding problems arising from national or regional macroeconomic corrections, such as recessions or credit crunches. American Banker Glossary …   Financial and business terms

  • bank-specific liquidity risk — One of three main types of liquidity need environments. The risk that a bank might experience a funding crisis resulting when one or more events or problems applicable just to the bank cause funds providers to lose confidence in the bank. Also… …   Financial and business terms

  • funding risk — funding liquidity risk or funding risk The potential that an institution will be unable to meet its obligations as they come due because of an inability to liquidate a sufficient quantity of assets or to obtain a sufficient quantity of new… …   Financial and business terms

  • instrument-specific liquidity risk — A type of systemic or capital markets liquidity risk. The risk that the failure of a market for a financial instrument, such as the commercial paper market, might trigger a bank funding crisis. See systemic liquidity risk. American Banker… …   Financial and business terms

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