funding liquidity risk

funding liquidity risk or funding risk
The potential that an institution will be unable to meet its obligations as they come due because of an inability to liquidate a sufficient quantity of assets or to obtain a sufficient quantity of new liabilities. American Banker Glossary

Financial and business terms. 2012.

Look at other dictionaries:

  • funding liquidity risk — noun The risk of not having access to sufficient funds to make a payment on time. Syn: structural liquidity risk …   Wiktionary

  • liquidity risk — (1) For a financial institution, the risk that not enough cash will be generated from either assets or liabilities to meet cash requirements. For a bank, cash requirements are primarily made up of deposit withdrawals or contractual loan fundings …   Financial and business terms

  • Liquidity risk — In finance, liquidity risk is the risk that a given security or asset cannot be traded quickly enough in the market to prevent a loss (or make the required profit).Types of Liquidity Risk#Asset Liquidity An asset cannot be sold due to lack of… …   Wikipedia

  • Liquidity risk —   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.… …   International financial encyclopaedia

  • internal liquidity risk — A term defined by the Federal Reserve. Internal liquidity risk relates largely to funding problems arising from unfavorable changes in the perception of an institution in its various markets: local, regional, national, or international. See bank… …   Financial and business terms

  • external liquidity risk — A term defined by the Federal Reserve. The risk that a bank will experience funding problems as a result of factors outside of its direct control. The Federal Reserve defines three types of external liquidity risk. These are geographic (such as… …   Financial and business terms

  • cyclical liquidity risk — A type of systemic liquidity risk. The risk of funding problems arising from national or regional macroeconomic corrections, such as recessions or credit crunches. American Banker Glossary …   Financial and business terms

  • bank-specific liquidity risk — One of three main types of liquidity need environments. The risk that a bank might experience a funding crisis resulting when one or more events or problems applicable just to the bank cause funds providers to lose confidence in the bank. Also… …   Financial and business terms

  • instrument-specific liquidity risk — A type of systemic or capital markets liquidity risk. The risk that the failure of a market for a financial instrument, such as the commercial paper market, might trigger a bank funding crisis. See systemic liquidity risk. American Banker… …   Financial and business terms

  • funding risk — funding liquidity risk or funding risk The potential that an institution will be unable to meet its obligations as they come due because of an inability to liquidate a sufficient quantity of assets or to obtain a sufficient quantity of new… …   Financial and business terms

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