At a bank, the risk that – borrowers draw on credit lines granted to them in an unplanned manner (in lending business) or – customer deposits are withdrawn to an unexpectedly high extent (in deposit business). This gives rise to a liquidity risk or a refinancing risk for the institution, which must be covered by appropriate risk management measures. – See call period, downside risk, risk, forward risk, prepayment risk, inventory credit. – Cf. BaFin Annual Report 2008, p. 56 (liquidity risk management regulations), BaFin Annual Report 2010, p. 56 (new liquidity management requirements).
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