Back-up facility (also referred to in German)

In relation to the stock exchange, a confirmed credit line that can be drawn in the event of insufficient market liquidity of a financial instrument. It thus ensures liquidity at all times in the sense of the solvency of an exchange participant (commitment to lend intended to take place if insufficient market liquidity causes difficulties for an exchange participant). – See acid ratio, off-balance sheet transaction, liquidation, credit commitment, irrevocable, liquidity premium, special purpose vehicle.

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
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