The overall cost to a major Australian bank of issuing a three-year bond has risen to around 120 basis points over the government bond yield compared with around 50 basis points precrisis. Graph 2 shows that similar, but larger, developments have occurred in other banking sectors.
Graph 2  2  BIS Review 171/2010  In addition to this effect on the pricing of wholesale funding, the re-assessment of risk has had a marked impact on the structure of banks’ funding (Graph 3). Banks, their regulators and markets have re-assessed the riskiness of different sources of funding, particularly liquidity risk and the related concept of rollover risk.