Many of these vehicles allow investors to redeem their funds at short notice, even though the underlying assets are not particularly liquid, and are likely to be even less liquid at a time when there are large-scale redemptions. This has occurred at a time when liquidity has declined in some markets, partly in response to a lower appetite for risk and tighter financial regulation.
Transparency of legal structure Banking groups vary widely in terms of structure, range of activities and complexity. This could complicate the effective supervision of banks within such groups. Furthermore, users of banking services must be able to make a proper assessment of the banking group’s activities and risk profile.