Banks is known for his Liquidity Risk.

In recent years, much attention has been given to market and credit risks, which have a significant effect on corporate and financial operations. The areas have received a lot of scrutiny, but there is another critical aspect of financial risk that has been overlooked. If not properly managed, the risk of loss arising from an inability to quickly realise asset value or obtain funding can be damaging. Large losses in asset/liability portfolios and off balance sheet activities can be caused by lack of liquidity and can lead to financial distress and insolvency. A comprehensive treatment of the topic focusing on the nature of the risk, problems that arise in asset and funding liquidity and mechanisms that can be developed to monitor, measure and control such risks is called Liquidity Risk.