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Liquidity

Liquidity is a term that is used for banks’ free assets or “short-term payment capability”. Good liquidity is an expression for the ability to pay running costs or manage a difficult period, if cash flows stop. Liquid assets must be immediately available and not placed in risky investments.

In connection with the financial crisis, banks have been through a process of significant capitalization and liquidity improvement.

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Finance Denmark is an business association for banks, mortgage institutions, asset management, securities trading and investment funds in Denmark. Our members are mortgage institutions, banks, savings banks, cooperative savings banks, Danish branches of foreign banks, asset managers, Danish securities dealers and investment funds. 

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