Likvidiriski

Likvidiriski is a term used to describe liquidity risk in finance, the risk that an entity cannot meet its financial obligations as they come due or can do so only at an excessive cost due to insufficient liquidity. This risk affects banks, corporations, funds, and other market participants and can arise from shortages of cash, funding, or market liquidity.

There are two main dimensions of likvidiriski: funding liquidity risk and market liquidity risk. Funding liquidity risk refers to the difficulty of securing enough cash to meet maturities, fund new activities, or honor withdrawals. Market liquidity risk concerns the ability to sell assets quickly without large price impacts in stressed conditions. Both dimensions can interact, amplifying financial stress during crises.

Causes of likvidiriski include imbalances between short-term liabilities and long-term assets, heavy reliance on unstable funding sources, market dislocations, and rapid redemptions by investors. Consequences range from higher borrowing costs and forced asset sales to insolvency in severe cases, especially when liquidity dries up at the wrong time.

Measurement uses metrics such as the liquidity coverage ratio (LCR), net stable funding ratio (NSFR), cash flow forecasting, and various liquidity stress tests. Management involves setting liquidity risk limits, maintaining sufficient high-quality liquid assets, diversifying funding sources, establishing contingency funding plans, and ensuring access to central bank facilities if needed.

Regulatory frameworks, notably Basel III in many jurisdictions, emphasize robust liquidity risk management, requiring liquidity buffers and prudent funding structures. See also liquidity risk management, capital adequacy, and risk management.