Liquidity is seen as no.1 “banana skin” for banks

LONDON – Inadequate liquidity is now seen as the most severe risk facing the banking industry, according to this year’s Banking Banana Skins survey. At the same time, the risk of too much regulation, which headed the results of the previous two surveys, has dropped to eighth place. The survey, conducted during February and March, is unsurprisingly dominated by concerns arising from the financial market crisis that erupted last summer. The crisis has significantly reshuffled the list of top concerns cited by bankers, their regulators, and close observers of the banking industry.