Liquidity buffer

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Revision as of 19:30, 9 July 2022 by imported>Doug Williamson (Add definition - source - Goldman Sachs -
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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