Stress testing / Liquidity and funding risk [45]

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Bullet points include: Most banks prior to crisis had unified cash management within individual bank units, but not usually across the multiple organisations that make up a typical banking group Many banks charged different funding costs for transactions with different maturities But frequently did not differentiate between maturities below a year When large spreads opened up between overnight and 3/6 month LIBOR this approach became untenable, and firms adopted more differentiated charging

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