Abstract
We begin our discussion of theoretical and practical liquidity risk problems with an analysis of funding liquidity risk, which we have previously defined as the risk of loss stemming from an inability to obtain unsecured funding at economically reasonable levels when needed. If shortand long-term debt facilities and off-balance sheet contingencies cannot be accessed as required, a firm might experience funding losses; when coupled with the asset liquidity risk problems discussed in the next chapter, more serious instances of financial distress can develop.
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© 2014 Erik Banks
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Banks, E. (2014). Funding Liquidity Risk. In: Liquidity Risk. Global Financial Markets Series. Palgrave Macmillan, London. https://doi.org/10.1057/9781137374400_4
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DOI: https://doi.org/10.1057/9781137374400_4
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-47692-3
Online ISBN: 978-1-137-37440-0
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