liquidity risk

What is liquidity risk?

liquidity risk definition and meaning on Finance terms:
The risk that a counterparty will not settle an obligation in full when it becomes due. Liquidity risk does not imply that a counterparty or participant is insolvent, since it may be able to effect the required settlement at some unspecified time thereafter. <

 

reference: https://www.ecb.europa.eu/home/glossary/html/index.en.html

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