Liquidity risk arises from the inability of a bank to accommodate unexpected decreases in {{U}}(21) {{/U}} or to fund increases in {{U}}(22) {{/U}}. When a bank has {{U}}(23) {{/U}} liquidity, it cannot obtain sufficient funds, either by increasing liabilities or by {{U}}(24) {{/U}} assets promptly, at a reasonable cost, thereby affecting profitability. In extreme cases, insufficient liquidity cam lead to the {{U}}(25) {{/U}} of a bank. |