Editing Liquidity risk (section)

==Types==
'''Market liquidity''' – An asset cannot be sold due to lack of liquidity in the market – essentially a sub-set of market risk.<ref name=BrunnermeierPedersen>{{cite journal |doi=10.1093/rfs/hhn098 |title=Market Liquidity and Funding Liquidity |journal=Review of Financial Studies |volume=22 |issue=6 |pages=2201–38 |year=2009 |last1=Brunnermeier |first1=Markus K. |last2=Pedersen |first2=Lasse Heje |citeseerx=10.1.1.572.1746 |s2cid=9093699 }}</ref> This can be accounted for by:
* Widening bid–ask spread
* Making explicit liquidity reserves
* Lengthening holding period for [[value at risk]] (VaR) calculations
'''Funding liquidity''' – Risk that liabilities:
* Cannot be met when they fall due
* Can only be met at an uneconomic price
* Can be name-specific or systemic<ref name=BrunnermeierPedersen />