Liquidity risk is a big deal for banks. It's all about having enough money to do what they need to do quickly and without losing too much. If a bank can't pay its bills, it's in trouble. To figure out how risky a bank's situation is, they look at things like how much money they have on hand and how much they owe. By keeping an eye on these numbers, banks can see if they might run into trouble with their money. Liquidity risk is a big deal because if a bank can't pay its bills, it can cause big problems for the bank's stability.