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
- LIQUIDITY FRANCHISE RISK
The risk arising from the implied obligation of a bank to continue making new loans or other new business related cash flows in order to preserve its business franchise even though it may be having funding difficulties. One of two types of liquidity contingency risk. Also called liquidity-implied option risk. See liquidity contingency risk and liquidity option risk.Back