However, the LCR and NSFR do not address all sources of liquidity risk, and poor dynamic liquidity risk management can lead to a firm’s failure just as  The SCB uses the results of the annual stress tests to determine how much capital firms are required to hold.
This has come at a time when wholesale funding costs have been rising by more than the official cash rate, and that has been passed on to end borrowers, while conditions on lending for some borrowers have tightened in response to higher perceived risk. But this outcome is preferable to the alternative of lending drying up. At present, the international environment remains very difficult.