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Liquiditätspuffer

liquidity buffer

noun lih-kvee-dih-TETS-poo-fer Rare
People & Society Money

Also means

liquidity cushion

Usage Note

Liquiditätspuffer is the reserve of liquid assets a bank or company holds to meet short-term obligations in a stress scenario. Post-2008 banking regulation (Basel III) formalised minimum Liquiditätspuffer requirements for banks worldwide.

Examples

"Die Bank hat ihren Liquiditätspuffer vorsorglich auf zehn Prozent der Bilanzsumme erhöht."

Natural Translation

The bank has prudently increased its liquidity buffer to ten percent of total assets.

Literal Translation

The bank has its liquidity-buffer precautionarily to ten percent of-the balance-sheet-total increased.

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