Bank paper unveils new systemic-risk model

A paper published by the Bank of England on Monday has revealed a systemic-risk monitor that accounts for the relationship between liquidity risk and financial stability.

The model, which focuses on the health of core banks in the British financial system, provides a framework for assessing how balance sheets dynamically adjust to macroeconomic and financial shocks, including those presented by liquidity risk.

"The crisis afflicting banks in the United Kingdom and internationally has illustra