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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 interest organisation for banks and mortgage institutions in Denmark. Our members are mortgage institutions, banks, savings banks, cooperative savings banks and Danish branches of foreign banks.

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