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The Net Stable Funding Ratio seeks to calculate the proportion of Available Stable Funding ("ASF"), via equity and certain liabilities, over Required Stable Funding ("RSF") via the assets. Sources of Available Stable Funding includes: customer deposits, long-term wholesale funding (from the interbank lending market ), and equity.
Development. Misconduct. v. t. e. In accounting, liquidity (or accounting liquidity) is a measure of the ability of a debtor to pay their debts as and when they fall due. It is usually expressed as a ratio or a percentage of current liabilities. Liquidity is the ability to pay short-term obligations.
Liquidity is a concept in economics involving the convertibility of assets and obligations. It can include: Market liquidity, the ease with which an asset can be sold. Accounting liquidity, the ability to meet cash obligations when due. Liquid capital, the amount of money that a firm holds. Liquidity risk, the risk that an asset will have ...
Current ratio. The current ratio is a liquidity ratio that measures whether a firm has enough resources to meet its short-term obligations. It compares a firm's current assets to its current liabilities, and is expressed as follows:-. The current ratio is an indication of a firm's liquidity. Acceptable current ratios vary from industry to ...
e. In macroeconomic theory, liquidity preference is the demand for money, considered as liquidity. The concept was first developed by John Maynard Keynes in his book The General Theory of Employment, Interest and Money (1936) to explain determination of the interest rate by the supply and demand for money. The demand for money as an asset was ...
Market liquidity. In business, economics or investment, market liquidity is a market's feature whereby an individual or firm can quickly purchase or sell an asset without causing a drastic change in the asset's price. Liquidity involves the trade-off between the price at which an asset can be sold, and how quickly it can be sold.
Cash and cash equivalents ( CCE) are the most liquid current assets found on a business's balance sheet. Cash equivalents are short-term commitments "with temporarily idle cash and easily convertible into a known cash amount". [ 1] An investment normally counts as a cash equivalent when it has a short maturity period of 90 days or less, and can ...
Liquidity crisis. In financial economics, a liquidity crisis is an acute shortage of liquidity. [1] Liquidity may refer to market liquidity (the ease with which an asset can be converted into a liquid medium, e.g. cash), funding liquidity (the ease with which borrowers can obtain external funding), or accounting liquidity (the health of an ...