Sally Dewar, the managing director of the risk division at the Financial Services Authority (FSA), has said banks will have to hold more liquid assets despite the high costs Associated with this.

Speaking at the single regulator's risk liquidity conference on Friday, Dewar acknowledged that the costs to implement more robust systems for liquidity risk management and to build up liquidity buffers were "substantial." However, firms would have to pay, she said, in order to limit the burden of