Benjamin E Diokno: Continuity, collaboration and a better future Speech by Mr Benjamin E Diokno, Governor of Bangko Sentral ng Pilipinas (BSP, the central bank of the Philippines), at the 1st Fintech Alliance Summit, Manila, 26 March 2019.
The conduits had funded illiquid long-term assets with shortterm liabilities, creating a substantial maturity mismatch. When a few of these conduits began to report subprime-related losses, investors ran from many conduits. The flight was broadly based because investors were uncertain about the incidence of losses and liquidity pressures arising from nontransparent and poorly understood exposures.