Business and Personal Finance Dictionary

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• LIQUIDITY CONTINGENCY RISK
  
  The risk that future events may require a materially larger amount of liquidity than the financial institution currently requires. One of the three primary components of liquidity risk along with mismatch liquidity risk and market liquidity risk. Also called prudential liquidity risk, funding risk or stand-by liquidity risk. Contingency risk arises from two closely related elements. See liquidity franchise risk and liquidity option risk.
  
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