The third challenge for banks is to address vulnerabilities in their liquidity management practices. Banks have relied increasingly on wholesale funding. This has rendered some of them vulnerable to a sudden disruption in the markets. The recent experience has spurred committees, both at the international and the EU level, into carrying out important work on liquidity risk.
Amando M Tetangco, Jr: The cornerstones of a thriving economy Opening speech by Mr Amando M Tetangco, Jr, Governor of the Central Bank of the Philippines (Bangko Sentral ng Pilipinas), at the 2007 Awarding Ceremony for BSP Stakeholders, Bangko Sentral ng Pilipinas, Manila, 4 July 2007.