Funding liquidity is the availability of credit to finance the purchase of financial assets. The International Monetary Fund (IMF) defines funding liquidity as "the ability of a solvent institution to make agreed-upon payments in a timely fashion".[1] Funding liquidity is essentially a binary concept: a bank can either settle obligations or it cannot.
- ^ Global Financial Stability Report. Washington, DC: International Monetary Fund. 2008. pp. xi. ISBN 9781589067202. OCLC 234146370.