BizTerm Definition
Liquidity risk
Full Definition

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. Related reports are: 1. Liquidity risk. 2. Nostro projection per correspondent. See also Position, position administration tables, standard position codes, combined position code, risk management, foreign exchange risk, forex, open currency position, mismatch, interest risk, forward revaluation, interest revaluation, break even and nostro projection.

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