Banks must avoid any potential concentration in their reliance on particular funding markets and sources. Banks must take into account the following major factors in assessing the degree of funding concentration:

(a) The maturity profile and credit-sensitivity of the liabilities;
(b) The mix of secured funding and unsecured funding;
(c) The extent of reliance on a single fund provider or a group of related fund providers; particular markets, instruments or products (e.g. interbank borrowing, retail versus wholesale deposits, and repo agreements and swaps); and intragroup funding;
(d) Geographical location, industry or economic sector of fund providers; and
(e) The currency of funding sources.
August 2018