liquidity crisis
1
7.3
- noun
- /lɪkˈwɪdəti ˈkraɪsɪs/
- Specialized
:
crisis de liquidez
- The sudden liquidity crisis forced many small businesses to close as they couldn't access necessary funds.
The bank is going as far as saying that we were hours away from massive liquidity crises and that they needed to prevent forced selling.
- The bank is going as far as saying that we were hours away from massive liquidity crises and that they needed to prevent forced selling.
- So remember, the liquidity crisis in the United Kingdom all started because this new Prime Minister came in in early September.
Examples
-
The country faced a liquidity crisis, and foreign banks refused to roll over short-term foreign credits to Korean financial institutions.
Academic text (2004) -
The bank is going as far as saying that we were hours away from massive liquidity crises and that they needed to prevent forced selling.
-
So remember, the liquidity crisis in the United Kingdom all started because this new Prime Minister came in in early September.
-
And so economists will call it a liquidity crisis.
Blog text (30) -
So the debt wasn't as bad as 2008, but the housing and stock markets were more vulnerable to a liquidity crisis.
Blog text (34) -
These measures were intended to cope with the short-term liquidity crisis.
Academic text (2003) -
Other banks scrambled to follow, each anxious not to be the last one out, and a severe liquidity crisis ensued.
Academic text (1992) -
There has been a severe liquidity crisis in terms of access of Ghanaian capitalists to credit, which has constrained their investment.
Academic text (1991) -
Europe today has a short-term liquidity crisis, as their debts and trade balances are sustainable (excluding Greece, of course).
Blog text (11) -
The resulting liquidity crisis has slammed the door on Argentines trying to secure new loans and prompted a new wave of desperation among pension-fund managers and investors with deposits in the country's banks.
Academic text (2001)
Synonyms
23
5.5
A situation when money problems make it hard to manage things
8
4.5
A time when banks make loans harder to get because they have little money
2
7.5
A time when banks lend less and interest rates are high
1
8.9
A lack of cash because owners cannot sell assets quickly without losing much value
Antonyms
How Severe
- Specialized
1
7.3
- Literature
2
7.5
Surface Forms
Morphology
The meaning is directly compositional: 'liquidity' refers to availability of cash or assets convertible to cash and 'crisis' denotes a severe difficulty, so a learner who knows both constituents can infer a situation of cash shortage or cash-flow problems. The noun+noun composition is regular and has clear equivalents in many languages (e.g., Spanish 'crisis de liquidez'), which supports immediate understandability.
Etymology
Liquidity crisis uses the word liquidity, from 'liquid' meaning water, so imagine money as water that flows to shops and banks. If that river dries up or is blocked, cash stops flowing and people cannot borrow or get money, which is the 'shortage of cash' the phrase describes.