capital markets disruptions

capital markets disruptions
A type of systemic liquidity risk. The risk of funding problems arising from problems in the secondary markets for financial instruments. For a community bank, the main problem is that a capital market disruption arises from the fact that the bank is only able to sell investment assets at very unacceptable prices.
See flight to quality and systemic liquidity risk. American Banker Glossary

Financial and business terms. 2012.

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