Is There an Optimal Funding Structure for Credit Institutions

This technical note focuses on knowing the various sources of bank funding and their performance in recent years, especially during the financial crisis. It underscores the close link between "funding structure" and "liquidity" in credit institutions. It concludes that there is no bank funding structure but each case hinges on the asset policy of each particular lender. It notes the growing importance of liquidity risk management which had been neglected by banks.