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colbolsky | 20:22 Mon 05th Mar 2001 | How it Works
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Just seen a sign saying "liquidity ans profitability - the bank's dilemma" can anyone enlighten me on this?!
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Avatar Image Henryn
Could be a spelling mistak, and should read liquidity AND profitability?
16:48 Thu 08th Mar 2001
Avatar Image Squirrel
I don't know much about banking, stocks etc. but I looked up the word "liquidity" and it means: "The quality of being readily convertible into cash e.g. 'an investment with high liquidity'". This suggests that the bank has to balance out how much money it is making in stocks and stuff (profitability?) with how much money it has ready to give out to people (liquidity). Or something like that.
23:31 Sun 06th Apr 2003

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