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Smart Reasoning:

C&E

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Qaagi - Book of Why

Causes

Effects

the impact of factorscontributeto liquidity risk

the major factorscontributingto liquidity risk

the key factorscontributingto liquidity risk

Researchers ... these factorscontributeto liquidity risk

firm specific factors and macroeconomic factorsinfluenceliquidity risk

a maturity mismatchleadsto liquidity risk

factors such as off - balance - sheet business , interbank business and shadow bankingmight triggerliquidity risks

small trading floats and very low trading volume which can lead to large spreads and high volatility in stock price(passive) is ... caused byliquidity risk

to sell them at a reasonable price because the underlying property may not be readily saleablethus creatingliquidity risk

unlikelyto contribute materiallyto liquidity risk

Centerra 's inability to access funds held at KGC the impact of changes in(passive) created byliquidity risks

small tradingfloats and very low trading volume which can lead to large spreads and high volatility in stock price(passive) is ... caused byliquidity risk

bank disabilities on meeting their maturity dates of depositors(passive) caused byliquidity risk

the lack of funds of participants(passive) caused bya liquidity risk

the holding companycan ... createliquidity risk

Some of the benefits of these cards include : Convenience and flexibility – Because business credit cards allow entrepreneurs to borrow money at will , they helppreventliquidity risks

no new purchases ... the necessary bond transactionsto preventliquidity risk

market disruptions or credit downgrades which may impact certain sources of funding(passive) can be caused byLiquidity risk

share pledging of listed companies(passive) caused byliquidity risks

an inability to refinance existing debt ,leadingto liquidity risk

growth in a firm(passive) caused bythe liquidity risk

market disruptions or credit downgrades which may cause certain sources of funding to dry up immediately(passive) can also be caused byLiquidity risk

market disruptions or credit downgrades , which many cause certain sources of funding to dry up immediately(passive) can be caused byLiquidity risk

consequence of these other financial risks such as credit risk(passive) often triggered byliquidity risk

Loved ones may be affected ( e.g. children 's education and living expenses ) , you may be forced to liquidate your retirement savings too soonresultingin liquidity risk

Negative Balance Sheet Cash FlowLeadsto Liquidity Risk

market disruptions or credit downgrades of the FAB Group which may cause certain sources of funding to dry up immediately(passive) can be caused byLiquidity risk

Government ’s borrowings ... revenuesto preventliquidity risk

Contingent Event Risk Eventsresultin liquidity risk

can take time to settlecreatingliquidity risk

But every move to reduce credit risk - including moves to greater segregation - almost always involvecreatinggreater liquidity risk

The margining system based on credit support agreementscreatesliquidity risk

Any mismatch between the receivables and company paying its debtcan leadto liquidity risk

an unexpected large and stressful negative cash flow over a short period(passive) is caused byLiquidity risk

an unexpected large andstressful negative cash flow over a short period(passive) is caused byLiquidity risk

disruptions to payments and credit intermediationresultfrom liquidity risk

the coronavirus outbreak which has put heavy pressure on the airline industry(passive) caused byliquidity risk

unforeseen outsized and stressful off - putting cash flow over a short span of time(passive) is mainly caused byLiquidity risk

A lack of active buyers may make it difficult to sell at allcreatinga liquidity risk

Clearing Mandates University of Houston Finance Professor Craig Pirrong(passive) Created ByLiquidity Risk

from an inability to sell a financial asset quickly at , or close to , its fair valuemay resultfrom an inability to sell a financial asset quickly at , or close to , its fair value

from decreased liquidity of a currency pair or CFDresultingfrom decreased liquidity of a currency pair or CFD

in bankruptcy of the institution if it is unable to undertake transaction even at current market prices.2could resultin bankruptcy of the institution if it is unable to undertake transaction even at current market prices.2

from an inability to sell a financial asset quickly at an amount close to its fair valuemay resultfrom an inability to sell a financial asset quickly at an amount close to its fair value

alsoledalso

to the insolvency of a number of themhas ledto the insolvency of a number of them

from the lack of an active market or a reduced number and capacity of traditional market participantsmay resultfrom the lack of an active market or a reduced number and capacity of traditional market participants

additional expensesmay createadditional expenses

from rapid credit expansion ... by holding back the pace of loanshave resultedfrom rapid credit expansion ... by holding back the pace of loans

the potential investment losses(passive) caused bythe potential investment losses

from overly fast credit asset expansionmay resultfrom overly fast credit asset expansion

banks to failcausebanks to fail

in Reserve Banksresultingin Reserve Banks

the difference across the currency denominationscausedthe difference across the currency denominations

from the lack of an active market for a holding , legal or contractual restrictions on resale , or the reduced number and capacity of market participants to make a market in such holdingmay resultfrom the lack of an active market for a holding , legal or contractual restrictions on resale , or the reduced number and capacity of market participants to make a market in such holding

to additional negative adjustment to the coverage and liquidity reserves assessmentwould ... leadto additional negative adjustment to the coverage and liquidity reserves assessment

from rapid credit expansion ... and ... appropriately contain the pace of loans and bill financinghave resultedfrom rapid credit expansion ... and ... appropriately contain the pace of loans and bill financing

in cash flow problemsresultingin cash flow problems

in wider bid - ask spreads than nominal Treasury bondsresultingin wider bid - ask spreads than nominal Treasury bonds

the fire sale of the assets by the bank ( Diamond & Rajan , 2001 ; Falconer , 2001may causethe fire sale of the assets by the bank ( Diamond & Rajan , 2001 ; Falconer , 2001

to Systemic Risk - Markets MediaLeadsto Systemic Risk - Markets Media

solvency problems in banks and vice versa , as illustratively shown at the example of U.S. investment bankscan triggersolvency problems in banks and vice versa , as illustratively shown at the example of U.S. investment banks

in emergency discount window loans and even insolvencycan resultin emergency discount window loans and even insolvency

from the incorrect match of investments and insurance liabilitiesresultsfrom the incorrect match of investments and insurance liabilities

from either the inability to sell financial assets quickly at their fair values or counterparty failing on repayment of a contractual obligation or insurance liability falling due for payment earlier than expected or inability to generate cash inflows as anticipatedmay resultfrom either the inability to sell financial assets quickly at their fair values or counterparty failing on repayment of a contractual obligation or insurance liability falling due for payment earlier than expected or inability to generate cash inflows as anticipated

subprime mortgage problems to spread widely and sow panic that led to the credit crisiscausedsubprime mortgage problems to spread widely and sow panic that led to the credit crisis

29317.2 Liquidity Risk Management ActivitiesCauses29317.2 Liquidity Risk Management Activities

systemic problems and think about how to incorporate them into our understanding of how to ameliorate future crisescreatedsystemic problems and think about how to incorporate them into our understanding of how to ameliorate future crises

due to nonperforming loans which highly bring impact on conventional banksis createddue to nonperforming loans which highly bring impact on conventional banks

for it to become incondusive , as it is a close - ended fundmay resultfor it to become incondusive , as it is a close - ended fund

Financial risk management objectives and policies , together with an indication of market risk and(passive) are setFinancial risk management objectives and policies , together with an indication of market risk and

to a bank run , where depositors rush to pull out their money from a bank , which further aggravates a situationcan sometimes leadto a bank run , where depositors rush to pull out their money from a bank , which further aggravates a situation

large losses at financial institutions when market liquidity problems led to so - called “ collateral death spiralscausedlarge losses at financial institutions when market liquidity problems led to so - called “ collateral death spirals

in the partial or full loss of the initial investmentcould resultin the partial or full loss of the initial investment

from a C$ 7.1 million inventory writedownresultingfrom a C$ 7.1 million inventory writedown

or minimize a loss - Tesionline 6 CHAPTER 1to preventor minimize a loss - Tesionline 6 CHAPTER 1

panic because the general public , saying depositors as risk - takerscausepanic because the general public , saying depositors as risk - takers

volatility as well as lower investment and shared revenuescausingvolatility as well as lower investment and shared revenues

from the different time horizon of their assets and liabilities ranging from high as for securities firms and investment banks to low in the case of life insurance companiesresultingfrom the different time horizon of their assets and liabilities ranging from high as for securities firms and investment banks to low in the case of life insurance companies

from off - balance sheet transactions as well as from transactions on our balance sheetresultingfrom off - balance sheet transactions as well as from transactions on our balance sheet

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Smart Reasoning:

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