The striking change in global financial markets after the collapse of Lehman Brothers was the decline in the functioning of not only the uncollateralized fund market but also of the foreign exchange swap market, which made it difficult to obtain funds in foreign currency, regardless of individual financial institution’s creditworthiness.
Smooth liquiditiy management by a financial institution cannot be achieved only by using its own cash, deposits, and borrowing capability. It also depends on the condition of market liquidity of financial assets.