Document-intensive letters of credit have indeed proved to be instrumental in the development of international trade finance but it must be recognized that there are a number of problems associated with traditional trade finance, for example the limited connectivity among buyer, supplier and financial institution; limited controls for the supplier and most importantly, the uncertainty of payment.
5  Therefore, unnecessary “noise” perceived by depositors relating to the uncertainty of the long term survival of a financial institution can spark off liquidity crises and bank runs. Financial institutions must therefore invest appropriately in developing effective corporate communication strategies as a new liquidity management tool.