Northern Rock relied on an originate-to-distribute approach, by which it raised money through securitizing mortgages, selling covered bonds, and making use of the wholesale, interbank funding markets. When Northern Rock became unable to fund itself through interbank loans, U.K. authorities discussed various strategies to relieve the bank’s difficulties. Which of the following is not a lesson learned from this case?
选项:
A:Liquidity stress testing is important for banks to manage liquidity risk.
B:Banks should not use derivatives to hedge their risks including liquidity risk.
C:As it is not possible to perfectly coordinate liquidity, banks need emergency liquidity cushions to ensure they can meet their commitments.
D:Banks may mitigate funding liquidity risk by reducing the maturity of their assets.
发布时间:2024-06-23 11:20:23