The measure acknowledged therefore the strong commitment of the Greek government to fully implement the programme and was an example of the ability and will of the ECB to make an independent credit assessment. The connection between credit and liquidity risk While I have emphasised so far credit risk management, I would also like to touch upon the more elusive concept of liquidity risk.
The current financial crisis has been triggered by the inability of some financial institutions to fund some complex assets. It has been traditionally thought that while such a situation may put the institution at strain, it should be clearly distinguished from that of an insolvency. However, the experience of the last three years has showed that the distinction is far from simple.