Private liquidity is created to a large degree through cross-border operations of banks and other financial institutions, and increasingly within the shadow banking system. In normal times, private liquidity dominates official liquidity. But private liquidity is highly procyclical and highly endogenous to the conditions that prevail in the global financial system.
BIS Review 108/2006  3  Because we think that an organized financial education programme should be in the interest of the economy as a whole, we intend to establish a broader network of stakeholders from whom we will be seeking financial, technical, strategic and operational assistance.