However, the lack of a defined international standard has reflected the extreme complexity of the liquidity risk, and generally applicable quantitative ratios are difficult to identify. Effective ways for assessing and limiting the liquidity risks are however important and regulators have already begun to examine the possibility of introducing specific ways of measuring and monitoring liquidity risks.
Regulation by economic substance My next point relates to the regulation of near-banks. Some jurisdictions have already commenced to regulate the financial institutions on the principle that if it looks and behaves like a bank, then it must be a bank.