Strictly and consistently implemented liquidity management tools can help bolster the resilience of the non-bank financial sector and safeguard broader system-wide stability by preventing localised shocks from escalating into fire-sale spirals, according to analysis from the European Central Bank (ECB).
The report, prepared by Antoine Baena, Matthias Sydow and Garbrand Wiersema, highlighted that such measures are vital for managing systemic risk in the fund sector.
The analysis found that l
