- market liquidity risk
- The potential that an institution cannot easily unwind or offset specific exposures, such as investments held as liquidity reserves, without incurring a loss because of inadequate market depth or market disruptions. One of the three primary components of liquidity risk along with mismatch liquidity risk and liquidity contingency risk. American Banker Glossary
* * *market liquidity risk UK US noun [C or U] FINANCE► the degree to which it will be difficult to sell an asset quickly enough to avoid losing money or to make enough profit: »
Some assets have a low market liquidity risk.► the degree to which it will be difficult for an organization to get money quickly enough to pay its debts or make necessary payments: »
Effective market liquidity risk management helps to ensure a bank's ability to meet its cash flow obligations.
Financial and business terms. 2012.