(1) A company's debts appearing on the liabilities side of its balance sheet. The liquidity requirements of Swiss banking legislation draw a distinction between short-term liabilities, which include those repayable on demand or often within one month, and total liabilities, consisting of all liabilities vis-à-vis third parties (including any provisions required). Frequently used as a synonym for obligations.

(2) The obligations of a business to its creditors, suppliers, customers, etc, as distinguished from those to its proprietors, partners or shareholders. Liabilities can be short-tem, medium-term or long-term. Opposite: assets.