Central Banking

Liquidity black holes

The current crisis has seen financial giants torpedoed by a lack of liquidity, which has rapidly transformed into questions over solvency. Conversations at SIBOS, the annual gathering of people in the business of liquidity delivery - payment system specialists - suggested three areas where regulators will focus.

First, there is the question of a bank's overall position across the payment systems it operates in. Even a medium-sized bank can have exposures in a bewildering array of systems if it