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Liquidity shocks

• Liquidity Shocks can occur when deposit drains are unusually large. Withdrawal shocks can occur if: investors have a concern about bank's solvency or if failure of a related bank leads to heightened concerns.

 
 Embedded terms in definition
 Liquidity
Solvency
 
 Related Terms
 Accounting liquidity
Liquidity
Liquidity diversification
Liquidity preference hypothesis
Liquidity preference theory
Liquidity preferences
Liquidity premium
Liquidity ratios
Liquidity risk
Liquidity theory of the term structure

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No one ever achieved greatness by playing it safe. - Harry Gray

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