Okuzeka
Finance & Banking vocabulary · Risk Management

Liquidity gap

Meaning in finance & banking, with examples

nounAdvanced term

In finance & banking, liquidity gap means: A mismatch between expected cash inflows and outflows over a specified period.

In Turkish: likidite açığı

How it is used

Specify the horizon and whether the gap is cumulative; assumptions about flows matter.

Example sentences

  1. Maturing wholesale funding created a liquidity gap next week.

    Outflows fall due before sufficient replacement inflows arrive.

  2. The stress scenario widened the liquidity gap by assuming faster deposit withdrawals.

    Different behavioural assumptions change projected cash mismatches.

Common collocations

  • cumulative liquidity gap
  • liquidity gap forecast
  • liquidityHow easily an asset can be turned into cash without losing value, or how much cash and easily sold assets a bank or company has to meet its payments.
  • cash flowThe movement of money into and out of a business over a period. Positive cash flow means more money is coming in than going out.

More terms: Risk Management

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This page explains English vocabulary for learners. It is not financial advice.