imported>Doug Williamson |
imported>Doug Williamson |
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| 1. ''Assets.''
| | ''Bank regulation''. |
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| An asset's ability to be turned into cash quickly and without significant loss compared with current market value.
| | A requirement under Basel III for banks to hold appropriate levels of high-quality liquid assets (HQLAs), generally at significantly higher levels than required under earlier regulations. |
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| Cash itself is the most liquid of assets.
| | The purpose of this requirement is to ensure that banks can manage stressed market conditions, under which the bank is assumed to suffer substantial outflows of the cash previously deposited with it. |
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| After that, the next most liquid asset is often high quality central government debt, for example gilts.
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| 2. ''Markets.''
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| In relation to a market, the extent to which large quantities of the asset traded in the market can be bought or sold at any time, with low transaction costs, and without affecting the market price.
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| 3. ''Short-term financial health.''
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| An entity’s ability to pay its obligations when they fall due, especially in the short term.
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| 4. ''Medium-term financial health.''
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| An entity's ability to source additional funds to meet its obligations, including in the medium and longer term.
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| 5. ''Financial measures.''
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| A financial measure designed to quantify an entity's ability to meet its obligations when they fall due.
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| * For non-financial organisations, simple measures of liquidity include the ''current ratio'' and the ''quick ratio''.
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| * For banks and other financial institutions, liquidity measures include those which identify how long the bank could survive if wholesale funds were to dry up and retail funding was heavily stressed. This period is known as the ''survival period''.
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| == See also == | | == See also == |
| * [[Authorisation]] | | * [[Basel III]] |
| * [[Authority limits]] | | * [[Net stable funding ratio]] |
| *[[Capital]]
| | * [[Cash investing in a new world]] |
| *[[Cash]]
| | * [[Leverage ratio]] |
| * [[Cash and cash equivalents]]
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| *[[Cash balance]]
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| *[[Cash flow]]
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| * [[Cash forecasting]] | |
| * [[Cash pool]]
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| * [[CRD IV]]
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| * [[Current ratio]]
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| * [[Deep market]]
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| * [[Diversification]]
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| * [[Emergency liquidity assistance]]
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| * [[Flight to liquidity]]
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| * [[Funding]]
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| * [[Funding liquidity risk]]
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| * [[Funds]]
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| * [[Gilts]]
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| * [[Headroom target]]
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| * [[Illiquid]]
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| * [[Individual Liquidity Guidance]]
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| * [[Insolvency]]
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| * [[Leverage]] | |
| * [[Liquid]]
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| * [[Liquidate]]
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| * [[Liquidation]]
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| * [[Liquidity buffer]]
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| * [[Liquidity Coverage Ratio]]
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| * [[Liquidity fee]]
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| * [[Liquidity Fund]]
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| * [[Liquidity gap]]
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| * [[Liquidity gate]]
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| * [[Liquidity insurance]]
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| * [[Liquidity investment]]
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| * [[Liquidity management]]
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| * [[Liquidity management tool]]
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| * [[Liquidity preference]]
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| * [[Liquidity premium]]
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| * [[Liquidity ratio]]
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| * [[Liquidity risk]]
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| * [[Liquidity run]]
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| * [[Liquidity stress]]
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| * [[Liquidity swap]]
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| * [[Liquidity upgrade]]
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| * [[Market liquidity risk]]
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| * [[Money management]]
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| * [[Net Stable Funding Ratio]]
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| * [[Overall Liquidity Adequacy Rule]]
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| * [[Quick ratio]]
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| * [[Run]]
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| * [[Security]]
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| * [[Solvency]]
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| * [[Standby liquidity agreement]]
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| * [[Stress]]
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| * [[Supply chain finance]]
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| * [[Survival period]]
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| * [[Yield]]
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| == Other resources ==
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| * [https://www.treasurers.org/hub/treasurer-magazine/liquidity-first-three-tips-for-treasurer Liquidity first: three tips for treasurers, The Treasurer Web exclusive, 2020]
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| *[[Media:2015_06_June_-_Safety_first.pdf| Safety first, The Treasurer, 2015]]
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| [[Category:Liquidity_management]] | | [[Category:Compliance_and_audit]] |
