The thirst for liquidity


Banks, like other financial institutions, are exposed to a wide range of risks, such as market, credit and operational risks, and monitor these using a range of different tools and techniques. But many of these tools are virtually useless in times of extreme market stress. “In a crisis your problems come down to one thing – liquidity,” says Christopher Michel, chief risk officer at CLSA in Hong Kong.

It is a sentiment echoed by Tham Ming Soong, head of risk management at UOB Group in Singapore.

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