Structural liquidity: the worry beneath the surface

Abstract

The author provides an analysis of the underlying structural liability in the banking business by analysing balance sheets across the banking industry. He shows that the structural liability of different banks varies enormously. He argues that asset and liability management professionals need to have a deep understanding of the financial markets and of the many lines that their banks will be running. Even then he suggests that liquidity crises are very difficult to predict or control.

Citation

Falconer, B. (2001), "Structural liquidity: the worry beneath the surface", Balance Sheet, Vol. 9 No. 3, pp. 13-19. https://doi.org/10.1108/09657960110695998