18-7 Excessive illiquidity can result in an FI's inability to meet required payments on liability claims and,at the extreme,in insolvency.

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Excessive illiquidity (lack of liquid assets) can lead to financial institutions (FIs) being unable to meet their required payments on liabilities (such as deposits) and, in extreme cases, can lead to insolvency (inability to pay debts).

18-7 Excessive Illiquidity Can Result in an FI's Inability to Meet