likuiditetit

Likuiditetit, or liquidity, is a term used in economics and finance to describe the ease with which an asset can be converted into cash without a significant loss of value, and a market or institution’s ability to meet short-term obligations.

Asset liquidity refers to how quickly and at what price an asset can be sold. Funding liquidity concerns the availability of cash or funding to meet immediate needs. Market liquidity describes the ease of trading assets in a market with minimal price impact, while balance-sheet liquidity focuses on a firm’s capacity to cover liabilities with liquid assets or access to funding.

Key indicators of liquidity include bid-ask spreads, trading volume and turnover, and the price impact of trades. Financial ratios such as the current ratio, quick ratio, and cash ratio assess corporate liquidity, while banks use metrics like the liquidity coverage ratio (LCR) and the net stable funding ratio (NSFR) to gauge resilience.

Determinants of liquidity include asset characteristics (convertibility, information transparency), market depth, time horizon, and transaction costs, as well as the overall supply and demand for cash.

Liquidity risk arises when an entity cannot easily meet short-term obligations, leading to distress sales, higher borrowing costs, or restricted investment activity. In markets, reduced liquidity can increase volatility and widen spreads, especially during stress.

Management strategies vary by actor. Individuals accumulate liquidity through emergency funds and diversified saving. Firms optimize cash flows via cash management, faster receivables collection, inventory control, and secured credit lines. Banks maintain liquidity buffers and access to central-bank facilities or interbank markets.

Regulatory and policy frameworks, such as Basel III for banks and central-bank lending facilities, aim to ensure adequate system-wide liquidity and to mitigate liquidity risk in times of stress.