Newsletter May 08: Banks urged to boost liquidity defences

LONDON – There is a clear need for action both by banks and the public authorities to strengthen the financial system’s defences against the kind of liquidity shock experienced during the 2007-08 crisis, a senior regulator has told a liquidity risk management conference. Nigel Jenkinson, executive director for financial stability at the Bank of England, identified four lessons from the crisis that he said should help prevent future problems.