Likidite

Likidite is a financial and economic concept describing the ease with which an asset can be converted into cash or the ability of a market or firm to meet short-term financial obligations. In general, liquid assets can be sold quickly with little to no loss of value, while illiquid assets require time and may involve significant price concessions. Liquidity also refers to the capacity of a market to absorb large trades without causing substantial price movements.

There are several facets of likidite. Market liquidity describes how readily a security can be bought or sold in the market without a substantial impact on its price. Funding or balance-sheet liquidity refers to the ability of a person, company, or financial institution to obtain cash when needed, including access to credit and liquid assets on hand.

Measurements and indicators include financial ratios such as the current ratio, quick ratio, and cash ratio, as well as market metrics like the bid-ask spread, market depth, and trading volume. In banking and finance, regulatory metrics such as the liquidity coverage ratio (LCR) and net stable funding ratio (NSFR) assess resilience to short-term liquidity stress.

Importance and risks: Adequate liquidity supports daily operations, reduces borrowing costs, and enables orderly asset sales in stress scenarios. Illiquidity can lead to forced disposals, higher funding costs, and increased insolvency risk. Central banks may provide liquidity during crises through facilities and lending programs to stabilize markets.

See also: Liquidity risk, Asset liquidity, Market depth, Basel III liquidity standards.