This may be catastrophic for the MSME sector as they have virtually no access to the alternate formal sources of finance. iv)  Impact of liquidity prescriptions  A key learning from the crisis was that liquidity is also important as with dynamic equilibria, liquidity problems can soon turn into solvency problems.
Therefore, SSBs have focused closely on improving the liquidity risk profile of the individual firms. But even these regulations have not been without their share of unintended consequences of varying degree across jurisdictions. On a broader level, in order to meet the LCR norms, the banks would need to hold more long terms liabilities and short term assets.