core liquidity

Definition

Financial assets held by banks which can be converted easily to cash and used to pay operational costs. A bank must be able to accurately predict how much core liquid to have on hand for withdrawal by account holders. Over-estimating the amount of money needed to be held in cash or cash equivalents will result in a loss of potential earnings for the bank.

Related Terms

Mentioned in these terms

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
core holding core liquidity provider