👉 A bank's fluid, often referred to as the bank's liquidity or cash flow, represents the readily available funds that a financial institution can deploy to meet its short-term obligations and operational needs without incurring significant costs. This includes cash held in reserves, easily convertible assets like money market instruments, and accounts receivable that can be quickly collected. The fluid's availability is crucial for maintaining operational stability, fulfilling customer demands, and ensuring the bank can navigate financial shocks or unexpected expenses. A healthy bank fluidity ensures it can continue lending, pay dividends, and meet regulatory requirements while maintaining customer trust and confidence.
