150 years of bank runs, crises, and why liquidity rules exist today #Banking #Liquidity #finance
6 April 2026·1 min
Watch on YouTubeAbout this video
👍 Support the Channel
If this lesson helped you, support The Industry Portal and get closer to the content. Unlock early access to videos and exclusive content in our Discord community.
Join here 👉 https://www.youtube.com/channel/UCTUpsZllVPHISCQ8tSG_lAA/join
--------------------------------------------------------------------------
Welcome to Liquidity Day 2 from the Industry Portal liquidity management course.
To truly understand liquidity risk management today, we need to understand where it came from. In this session, we step back through more than 150 years of banking history to explore how bank runs, liquidity failures, and financial crises have shaped the rules and frameworks that define modern banking.
We trace the evolution of liquidity risk from early crises like the collapse of Overend, Gurney and Company and the Panic of 1907, through to the creation of central banking systems and deposit insurance. We then move into modern history, examining the Global Financial Crisis and how events such as the failure of Northern Rock, Bear Stearns, and Lehman Brothers transformed liquidity risk into a central pillar of global regulation.
You will understand how frameworks such as Basel III, including the Liquidity Coverage Ratio and Net Stable Funding Ratio, were introduced to strengthen resilience, alongside supervisory processes like ILAAP and SREP across the UK and Europe.
The session also explores more recent stress events, including the COVID 19 crisis and the rapid collapses of Silicon Valley Bank and Credit Suisse, reinforcing how quickly confidence can disappear and why liquidity risk remains one of the most critical risks in banking today.
By the end of this session, you will understand why liquidity risk is never static, why every crisis reshapes regulation, and why preparing for the unexpected is at the core of effective liquidity management.
This session sets the foundation for upcoming topics including liquidity risk types, stress testing, funding strategies, and real time treasury management.
Subscribe to Industry Portal for the full liquidity management series.
#IndustryPortal #LiquidityManagement #Banking #Finance #Treasury #RiskManagement #BaselIII #FinancialCrisis #BankRuns
Get the next one in your inbox
A weekly note across Finance & Treasury, Innovation & Automation and Career Development. No spam, unsubscribe any time.