Business and Personal Finance Dictionary
# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
- CAPITAL MARKETS DISRUPTIONS
A type of systemic liquidity risk. The risk of funding problems arising from problems in the secondary markets for financial instruments. For a community bank, the main problem is that a capital market disruption arises from the fact that the bank is only able to sell investment assets at very unacceptable prices. See flight to quality and systemic liquidity risk.Back