Cash flow risk in banking refers to the possibility that a bank may not have sufficient cash inflows at the required time to meet its financial obligations. It arises due to mismatches between cash inflows and cash outflows, unexpected withdrawals by depositors, delays in loan repayments, fluctuations in interest rates, market disruptions, and changes in customer behavior. Cash flow risk is a significant component of liquidity risk and directly affects a bank's ability to maintain confidence among depositors, investors, regulators, and other stakeholders. Effective management of cash flow risk is essential for maintaining financial stability, ensuring uninterrupted banking operations, and complying with regulatory requirements. Banks primarily generate cash inflows through loan repayments, interest income, investments, fees, and borrowings, while cash outflows occur through deposit withdrawals, loan disbursements, operating expenses, repayment of borrowings, and payment of interest. A mismatch in the timing or amount of these inflows and outflows creates cash flow risk. Even profitable banks may face financial distress if they fail to maintain adequate liquidity to meet immediate obligations. Several factors contribute to cash flow risk in banks. One important factor is the maturity mismatch between assets and liabilities. Banks generally accept short-term deposits while extending long-term loans. If many depositors withdraw funds simultaneously, the bank may struggle to generate sufficient cash from long-term assets. Another factor is credit risk, where borrowers fail to repay loans on time, reducing expected cash inflows. Market volatility can also reduce the value or liquidity of investments, making it difficult to convert assets into cash. Economic downturns, financial crises, and sudden changes in interest rates may further increase cash flow uncertainty. Cash flow risk can have serious consequences. It may lead to liquidity shortages, increased