Examples include absorbing the risks inevitably involved in the settlement process; holding relatively illiquid assets (such as loans) or contingent claims on such assets (such as back up credit lines or asset securitisation with some implicit or explicit recourse) against relatively short-term liabilities; and market-making. But all of these activities are grounded in banks’ greater ability to raise the necessary funding than ultimate users.
BIS central bankers’ speeches  1  I’d like to conclude by saying that we will consider your comments carefully as the agencies coordinate to discuss and consider the appropriate action that is likely to best serve our financial system and the interests of depository institutions and consumers.