Funding Strategy, Diversification, Limits and Concentration

Funding Strategy, Diversification, Limits and Concentration - Article

This article explains how banks design funding strategies, diversify funding sources and control liquidity concentration through limits. Using practical banking cases, it covers depositor concentration, wholesale funding, maturity and rollover risk, currency funding, secured versus unsecured sources, market access and contingency considerations. It helps CAIIB BFM learners identify weak funding structures and distinguish cheap funding from stable, diversified and resilient funding.