The amount of cash, bank balances and unused credit lines held by an economic entity. – The ability of an economic entity to maintain solvency (ability to pay, to meet financial obligations) even in exceptional circumstances. – See Basel-III, core deposit, debt tail, capital conservation buffer, funds, liquid, liquidity risk management, buffer, countercyclical, risk-bearing capacity, cyclicality. – ECB Monthly Bulletin, December 2008, p. 29 (banks mainly use public debt instruments as liquidity buffers); BaFin Annual Report 2009, p. 51 (CEBS recommendations on the composition of the liquidity buffer).
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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