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In 2008, the Basel Committee on Banking Supervision came up with several Principles for Sound Liquidity Risk Management and Supervision. Principle 4 from the document
In 2008, the Basel Committee on Banking Supervision came up with several Principles for Sound Liquidity Risk Management and Supervision. Principle 4 from the document states"A bank should incorporate liquidity costs, benefits and risks in the internal pricing performance measurement and new product approval process for all significant business activities (both on- and off-balance sheet), thereby aligning the risk- taking incentives of individual business lines with the liquidity risk exposures their activities create for the bank as a whole." In your opinion ,
how does this principle factor into credit card interest rates?
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