Likviidsusreservi

Likviidsusreservi (Finnish for liquidity reserve) refers to a stock of cash and other highly liquid assets held by an organization to meet short-term funding needs and to manage liquidity risk. It serves as a buffer to ensure the organization can continue operations even under stress and is distinct from capital reserves or investments that are intended for longer-term returns.

The primary purpose of a likviidsusreservi is to enable the organization to cover unexpected cash outflows, maturing liabilities, and normal operating needs without resorting to disruptive measures. It supports orderly financing, smooth settlement of obligations, and the ability to access funding markets during periods of stress. In financial institutions, it complements regulatory liquidity requirements and internal risk management frameworks.

Typical components of a likviidsusreservi include cash on hand, deposits at central banks, and high-quality liquid securities such as government bonds. Depending on the entity, undrawn lines of credit and other readily available facilities may also form part of the reserve. For non-financial corporations, a liquidity buffer might comprise cash, marketable securities, and access to revolving credit facilities.

Measurement and governance of a likviidsusreservi involve setting targets as a function of expected short-term outflows and stress scenarios. Banks often use metrics related to the Liquidity Coverage Ratio (LCR) and other regulatory standards, while companies implement internal liquidity policies and treasury dashboards. The reserve is managed by treasury or risk management teams, with regular stress testing and reviews of asset diversification and counterparty risk.

In practice, likviidsusreservi supports financial stability and operational continuity, aligning with regulatory frameworks on liquidity while balancing the cost of holding liquid assets against their safety benefits.