Post-crisis financial regulatory reform has taken some steps to address the financial stability risks associated with a dealer's use of short-term SFT funding to finance inventory. For example, the liquidity coverage ratio requires firms to hold a buffer of high-quality liquid assets when they use SFT liabilities that mature in less than 30 days to fund many types of securities.
However, with questions of transparency and asset valuation remaining, term interest rates continue to be elevated with higher than normal spreads remaining between  2  BIS Review 88/2008  longer-term rates and official rates. This will only change when confidence is restored among financial market participants.