Throughout the global financial crisis which began in mid-2007, many banks struggled to maintain adequate liquidity. Unprecedented levels of liquidity support were required from central banks to sustain the financial system and even with such extensive support several banks failed, were forced into mergers or required resolution. (BCBS 165). Using this statement

1. Assess the importance of sound liquidity management within banks

2. Explain sources and types of liquidity risk and how it is measured and managed

You may refer CBO Circular BM 955

The word limit for this answer including intext references is 600 words.