liquiditätsdecke
Liquiditätsdecke is a German term that translates to liquidity buffer or liquidity reserve. It refers to the amount of readily available funds or assets a company or financial institution holds to meet its short-term obligations and unexpected cash outflows. This buffer is crucial for maintaining operational stability and solvency, especially during periods of financial stress or market volatility.
The concept of a liquiditätsdecke is central to financial risk management. It ensures that an entity can
A liquiditätsdecke can comprise various assets, including cash, highly liquid securities like government bonds, and credit