BoE's Jenkinson on liquidity risk

Developments in financial markets have increased the importance and complexity of liquidity risk management over the past decade, said Nigel Jenkinson, the executive director responsible for financial stability at the Bank of England.

Discussing the trend towards securitisation, Jenkinson said: "Banks originated large volumes of long-term loans in the expectation that they could be quickly and readily sold on but leaving them with additional funding risks if they could not. Contingent liquidity

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