Liquidity buffer
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1. Banking.
A stock of unencumbered high quality liquid assets, held to protect against failure under liquidity stress.
2. Money market funds.
A stock of high quality liquid assets, held to support the fund's liquidity in case of high levels of redemptions.
Liquidity buffers can include cash, public debt, and other sufficiently liquid assets.
See also
- Buffer
- Capital
- Capital Conservation Buffer
- Cash and cash equivalents
- Countercyclical buffer
- Daily liquid assets (DLA)
- High Quality Liquid Assets (HQLAs)
- LAB
- Level 1 liquid assets
- Level 2 liquid assets
- Liquidity
- Liquidity Coverage Ratio
- Money market fund (MMF)
- Redemption
- Redemption gate
- Stress
- Survival period
- Unencumbered
- Weekly liquid assets (WLA)
