Reserve Bank of New Zealand, Assistant Governor Karen Silk in this speech says there are three kinds of liquidity. And all three are important and interconnected:
In my remarks today I will differentiate between three types of liquidity and how at Te Pūtea Matua we have an interest in each of them. I will also talk to how these forms of liquidity interact with one another and how efforts to improve some can have an adverse effect on others. The three forms of liquidity I will cover are:
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- Funding Liquidity: which for our purposes today, will refer to how well banks are funded and their ability to meet their financial obligations as they fall due
- System Liquidity: which refers to the amount of settlement cash in the banking system.
- Market Liquidity: which refers to how easy it is to transact in markets without moving prices
Mostly Economics 
