While it probably remains true that interbank
markets play a very important role in
spreading the liquidity scourge across the
whole banking system, the structure of events
leading to a Liquidity Event will change. In
such circumstances, it is paramount for risk
management not to fall for for many a general’s
fallacy, namely to plan to fight the last war again
and again. Although patterns do persist, the
exact chain of events that lead to a particular
crisis will most likely never re-appear again
in the same sequence, so it is very important
to preemptively analyze their structure and
dynamics.