liquidity gaps

Language: en

📖 Definitions

  1. A situation in which an entity, such as a bank or financial institution, lacks sufficient liquid assets to meet its short-term obligations or cover sudden withdrawals of funds.; The difference between the amount of cash or easily convertible assets available and the immediate cash requirements needed for operations or debt repayment.

💬 Examples

  1. By seizing these substantial funds, the government hopes to plug liquidity gaps and ensure that depositors' interests are protected.

  2. The central bank intervened to address the widening liquidity gaps caused by the sudden market volatility.