Federal Reserve Bank of Dallas President Lorie Logan said on Friday that all the participants involved in the financial system should remain responsible in trying to handle the potential obstacle that institutions could face in their short-term obligations.
"It remains incumbent on all players in the financial system—banks, other market participants, as well as central banks in our roles as both regulators and financial institutions—to appropriately manage liquidity risk. The appropriate strategies to manage liquidity risk look somewhat different in a floor system, and I think all players have work left to do to fully gain the benefits of these systems," her statement noted.
She insisted that on the banking crisis experienced earlier, it was "unacceptable" that banks were not prepared "in an age when bank runs can start within minutes on social media."
