liquidity crisis
Funds dry up
A liquidity crisis occurs when an institution or market cannot convert assets to cash quickly enough to meet obligations.
Banks face liquidity crises when depositors withdraw funds faster than reserves allow.
The 2008 financial crisis began as a liquidity crisis when banks stopped lending to each other: The Fed injected billions to ease the liquidity crisis.
Distinguished from insolvency—a liquidity crisis means you can't access money fast enough, not that you don't have it.
- bank runPanicked mass withdrawal
- run on the bankMass withdrawal from financial institution
- credit crunchSevere reduction in lending
- credit freezeRestriction on credit inquiries
- systemic riskEconomy-wide collapse potential
too big to fail · recession · insolvency · money market · fire sale · financial contagion · bailout · deflation · bankruptcy · default · central bank · lender of last resort · debt restructuring · debt · currency devaluation · monetary policy · desperation · flight to safety
- economic crisisrecession, depression, collapse, downturn, contraction
- economic downturnsrecession, deflation, economic collapse, market decline, depression
- financial crisesfinancial collapse, bank run, economic collapse, bank failure, bank failures
- Financial CrisisGreat Recession, recession, bank failures, market crash, housing crash
- fiscal crisesfiscal emergency, budget deficit, debt ceiling, government shutdown, fiscal cliff
- global crisespandemic, economic collapse, financial collapse, climate change, food insecurity
liquidity crisisdeep pockets
Considerable financial reserves
cash reserves · cash hoard · liquid assets · war chest · overcapitalization
liquidity crisisfinancial stability
Sound economic standing
financial health · solvency · financial security · creditworthiness · going concern