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
geographic liquidity risk — A type of systemic risk where deterioration in regional economic conditions triggers liquidity crisis. Usually, such a crisis is triggered by credit loss. See systemic liquidity risk. American Banker Glossary … Financial and business terms
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
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
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
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
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
liquidity in the ordinary course of business — One of the three main types of liquidity need environments. An institution s going concern need for liquidity. Funding required for the normal ebb and flow of cash in the course of conducting bank business. Includes seasonal funding fluctuations … Financial and business terms
Risk — takers redirects here. For the Canadian television program, see Risk Takers. For other uses, see Risk (disambiguation). Risk is the potential that a chosen action or activity (including the choice of inaction) will lead to a loss (an undesirable… … Wikipedia
Risk — Typically defined as the standard deviation of the return on total investment. Degree of uncertainty of return on an asset. The New York Times Financial Glossary * * * ▪ I. risk risk 1 [rɪsk] noun 1. [countable, uncountable] the possibility that… … Financial and business terms
