In determining a bank's financial condition, liquidity is assessed by examining

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Liquidity in a bank's financial condition is assessed by examining credit conditions (which affect the bank's ability to borrow), deposit volatility (which affects cash flow), the current stock of liquid assets (which are assets that can be quickly converted to cash), and loan commitments (which are future cash outflows). All these factors together give a comprehensive view of a bank's liquidity.

In Determining a Bank's Financial Condition, Liquidity Is Assessed by Examining