Term of the day
liquidity crisis
A situation where depositors demand larger withdrawals than normal and banks are forced to borrow funds at an elevated interest rate. A liquidity crisis is usually unpredictable and can be due to either a lack of confidence in the specific bank, or some unexpected need for cash. Liquidity crises can ultimately result in ‘a run on a bank’ and even the insolvency of the bank.
Example
According to the Treasury report, Northern Rock, the first bank failure in the 2007-8 banking crises followed a...
Professor of the week
Philip Molyneux
Philip Molyneux is professor of banking and finance and head of Bangor Business School in Wales, UK.
Business glossary
- corporate communicationCorporate communication is a management function or department, like marketing, finance, or operations, dedicated to the dissemination of...
- corporate governance
- corporate responsibility
- design thinking
- entrepreneurship
- generation Y
- golden, tin and silver parachutes
- green technology
- intrapreneurship
- media relations
- price/earnings ratio
- return on equity
- seed capital
- short-termism
- social media
- social network
- spin-off
- the internet of things
- venture capital
- word-of-mouth marketing
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Buzz Words
- augmented realityAugmented reality (AR) refers to the technology that offers a real-time view of one's immediate surroundings altered or enhanced by computer...
- carry trade
- communal strategy
- crowdsourcing
- dark pools
- Dodd-Frank Act
- dove
- ESG
- fair trade
- green washing
- hawk
- microfinance
- Obamanomics
- quantitative easing
- reputation commons problem
- sustainable development
- too big to fail
- toxic assets
- Volcker rule
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In the News
- Basel IIIGlobal banking regulators sealed a deal, in September of 2010, to effectively triple the size of the capital reserves that the world’s banks...
- Big Society
- collateral debt obligation
- core tier one capital
- credit rating
- double-dip recession
- EFSF
- Federal Reserve System (Fed)
- Financial Services Authority
- hedge funds
- income tax
- monetary policy
- Office for Budget Responsibility
- Project Merlin
- Securities and Exchange Commission SEC
- Serious Fraud Office
- shadow banking
- sifis
- sovereign debt
- stress tests
- More...Hide...
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