illiquid reserves
[/ɪˈlɪkwɪd rɪˈzɜrvz/]
nounpl: illiquid reserves
reservas ilíquidas
1. Assets held by banks or financial institutions that cannot be quickly converted into cash without significant loss of value
The bank's illiquid reserves consisted mainly of long-term mortgages and real estate holdings.
As reservas ilíquidas do banco consistiam principalmente em hipotecas de longo prazo e propriedades imobiliárias.
2. Funds set aside by a company or institution that are not easily accessible or tradable in the short term
During the financial crisis, many institutions struggled with illiquid reserves that could not be mobilized quickly.
Durante a crise financeira, muitas instituições lutaram com reservas ilíquidas que não podiam ser mobilizadas rapidamente.
This is primarily a technical financial term used in banking regulation, corporate finance, and investment management in both Brazil and the USA. It gained particular prominence following the 2008 financial crisis when institutions faced challenges with illiquid reserves. In Brazil, the term is commonly used by Banco Central do Brasil (Central Bank) and financial regulators when discussing bank stability and capital requirements.
Related Idioms & Phrases
cash is king (contrasting with illiquid reserves)
tied up in illiquid reserves
conversion of illiquid reserves to liquid assets
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