Moreover, it has brought to the fore the increased interaction between market liquidity and funding liquidity of individual institutions. Indeed, the trend among large global banks has been towards greater reliance on wholesale market sources of funding.
Instead of relying on retail deposits, some banks are increasingly dependent on interbank borrowing, short and long-term debt, and, as an ultimate line of defence, on the sale of marketable securities. This has made access to funding liquidity more dependent on market conditions. In addition, the range of systemically relevant institutions has become broader.