The regulators of the conventional industry have focused on the issue of liquidity because, pre-crisis, conventional banks increasingly relied on their access to short-term interbank markets to fund relatively long-term assets. Borrowing short to lend long is, of course, fundamental to the business of banking.
This work has been strongly supported by the Eurosystem, notably via the ESCB Banking Supervision Committee’s annual report on EU banking sector stability and the biannual ECB Financial Stability Review of the euro area financial system.