3  Nicolae Garleanu and Lasse H. Pedersen (2011) “Margin-Based Asset Pricing and Deviations from the Law of One Price”, The Review of Financial Studies, 24(6), 1980–2022  4  Acharya, V., L. Pedersen, T. Philippon, and M. Richardson (2011) “Measuring Systemic Risk”, in Acharya, V., T. Cooley, M. Richardson, I. Walter (editors), “ Regulating Wall Street” , John Wiley & Sons  2  BIS central bankers’ speeches  prescribes an intervention aimed at improving funding liquidity as a measure of breaking the mentioned downward spiral and restoring market liquidity, thereby avoiding the failure of illiquid but solvent financial institutions.
Against the background of low interest rates, cheap refinancing and low profitability, it is increasingly important that banks manage risk in an appropriate manner. To do that properly, managers need sound data on which to base their decisions. We will therefore be formulating specific requirements concerning risk management and data quality. Our fifth priority will be banks’ liquidity.