Liquidity: Difference between revisions
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A financial measure designed to | A financial measure designed to quantify an entity's ability to meet its obligations when they fall due. | ||
For non-financial organisations, simple measures of liquidity include the ''current ratio'' and the ''quick ratio''. | * For non-financial organisations, simple measures of liquidity include the ''current ratio'' and the ''quick ratio''. | ||
* 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. The survival period is normally measured in days. | |||
For banks and other financial | |||
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* [[Illiquid]] | * [[Illiquid]] | ||
* [[Liquidation]] | * [[Liquidation]] | ||
* [[Liquidity Coverage Ratio]] | |||
* [[Liquidity preference]] | * [[Liquidity preference]] | ||
* [[Liquidity management]] | * [[Liquidity management]] | ||
| Line 39: | Line 39: | ||
* [[Liquidity risk]] | * [[Liquidity risk]] | ||
* [[Money management]] | * [[Money management]] | ||
* [[Net stable funding ratio]] | |||
* [[Quick ratio]] | * [[Quick ratio]] | ||
* [[Run]] | * [[Run]] | ||
Revision as of 19:25, 10 August 2016
1.
An asset's ability to be turned into cash quickly and without significant loss compared with current market value.
2.
An entity’s ability to pay its obligations when they fall due, especially in the short term.
3.
An entity's ability to source additional funds to meet its obligations, including in the medium and longer term.
4.
A financial measure designed to quantify an entity's ability to meet its obligations when they fall due.
- For non-financial organisations, simple measures of liquidity include the current ratio and the quick ratio.
- 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. The survival period is normally measured in days.
See also
- Authorisation
- Authority limits
- Cash and cash equivalents
- Cash forecasting
- Cash pool
- Current ratio
- Deep market
- Headroom target
- Illiquid
- Liquidation
- Liquidity Coverage Ratio
- Liquidity preference
- Liquidity management
- Liquidity premium
- Liquidity risk
- Money management
- Net stable funding ratio
- Quick ratio
- Run
- Security
- Solvency
- Supply chain finance
- CertICM
- Yield
