The study of the BCBS shows that the shortfall of liquid assets to meet the NSFR is around EUR 2.9 trillion for the worldwide banking sector [this figure does not include the surplus of banks that meet the NSFR]. This headline figure can not be simply totalled with the shortfall of the LCR that I mentioned before.
In that period, we had two bank failures, but the crisis also affected more systemically important banks and there was no resolution framework in place. The Dutch government had to support banks with taxpayers’ money. This resulted in a difficult balancing act: maintaining public confidence while retaining critical bank functions.