Unsecured funding is money raised without pledging a specific asset as collateral. In banking, treasury, and payments, it is a foundational concept because the lender is relying mainly on the borrower’s creditworthiness, liquidity strength, and promise to repay. Understanding unsecured funding helps you read bank balance sheets, assess liquidity risk, interpret funding costs, and recognize why some institutions become fragile during stress.

1. Term Overview

• Official Term: Unsecured Funding
• Common Synonyms: unsecured borrowing, uncollateralized funding, unsecured liabilities, credit-based funding
• Alternate Spellings / Variants: Unsecured-Funding
• Domain / Subdomain: Finance / Banking, Treasury, and Payments
• One-line definition: Funding raised without giving the lender a specific pledged asset as collateral.
• Plain-English definition: It is money a bank, company, or financial institution borrows based mainly on trust in its ability to repay, not on assets it has pledged.
• Why this term matters:
• It affects a bank’s liquidity profile and funding stability.
• It influences borrowing cost because lenders charge for credit risk.
• It matters in stress testing, regulation, treasury management, and investor analysis.
• Heavy reliance on short-term unsecured funding can become dangerous if lenders stop rolling it over.

2. Core Meaning

What it is

Unsecured funding is any funding source where the borrower does not pledge specific collateral to the lender.

If a bank borrows overnight from another bank and does not post government securities, that is unsecured funding. If it raises money through a senior unsecured bond, that is also unsecured funding. If it takes customer deposits, those deposits are generally unsecured liabilities from the bank’s perspective too.

Why it exists

Unsecured funding exists because many lenders are willing to lend based on:

• the borrower’s credit quality
• franchise strength
• regulatory standing
• expected repayment capacity
• relationship value
• market pricing of risk

Borrowers often prefer it because they can raise money without tying up assets as collateral.

What problem it solves

It solves several practical problems:

• gives flexible access to money
• avoids encumbering valuable assets
• supports daily liquidity needs
• allows balance sheet growth
• helps diversify funding sources
• can be faster or operationally simpler than secured borrowing

Who uses it

Typical users include:

• commercial banks
• investment banks
• broker-dealers
• corporate treasury teams
• non-bank financial institutions
• fintechs and payment firms
• public sector issuers in some contexts

Where it appears in practice

You commonly see unsecured funding in:

• customer deposits
• interbank loans without collateral
• certificates of deposit
• commercial paper
• senior unsecured notes or bonds
• money market borrowings
• unsecured credit lines

3. Detailed Definition

Formal definition

Unsecured funding is funding obtained without granting the lender a security interest in specific assets of the borrower.

Technical definition

From a balance sheet and legal-claim perspective, unsecured funding creates a liability for the borrower, while the lender has a general claim on the borrower rather than a claim backed by identified pledged collateral.

Operational definition

Treasury and liquidity teams typically classify a funding source as unsecured when:

1. no specific asset pool is pledged,
2. no collateral transfer or margining arrangement backs the borrowing, and
3. repayment depends primarily on the borrower’s credit standing and cash flow capacity.

Context-specific definitions

Banking context

In banking, unsecured funding often includes:

• retail deposits
• corporate deposits
• interbank borrowings without collateral
• commercial paper
• senior unsecured debt

However, risk treatment depends on source, tenor, depositor type, insurance status, concentration, and behavioral stability.

Treasury context

In treasury management, unsecured funding is a funding channel that preserves collateral for other uses and is often analyzed by:

• maturity
• concentration
• pricing spread
• rollover risk
• contingency replacement options

Payments context

In payment systems, unsecured funding may refer to money used to meet settlement obligations without collateral backing. This matters especially when institutions need intraday or overnight liquidity.

Prudential / regulatory context

Supervisors usually do not treat all unsecured funding the same way. They often distinguish between:

• retail vs wholesale
• insured vs uninsured
• operational vs non-operational
• short-term vs long-term
• stable vs less stable

So the exact reporting definition can vary by regulator and reporting template.

4. Etymology / Origin / Historical Background

The term comes from the basic legal distinction between secured and unsecured credit.

• Secured means the lender has rights over pledged collateral.
• Unsecured means the lender does not have that specific asset protection.

Historical development

Early banking relied heavily on unsecured claims. Depositors placed money with banks based on trust, reputation, and legal enforceability, not on direct collateral. As financial markets matured, institutions also began borrowing from one another on an unsecured basis.

Over time, specialized money markets developed:

• interbank markets
• certificates of deposit
• commercial paper
• senior unsecured bond markets

Later, collateralized markets such as repo became more important, especially as government securities markets deepened.

How usage changed over time

After major financial crises, especially the global financial crisis, market participants became much more sensitive to:

• short-term wholesale unsecured funding dependence
• rollover risk
• concentration in uninsured or confidence-sensitive funding
• the need for stable term funding

More recently, rapid digital deposit movement and confidence shocks have again highlighted that some unsecured funding can leave faster than past assumptions suggested.

Important milestones

Broadly important milestones include:

• expansion of interbank markets
• development of commercial paper and CD markets
• rise of repo and collateralized central bank operations
• Basel liquidity standards after the global financial crisis
• renewed focus on deposit stickiness and funding concentration after modern bank runs

5. Conceptual Breakdown

Unsecured funding is best understood through several dimensions.

1. Absence of collateral

Meaning: No specific asset is pledged to the lender.
Role: Defines the funding as unsecured.
Interaction: Makes lender confidence more dependent on borrower credit strength and market reputation.
Practical importance: The borrower keeps assets unencumbered, but may face higher funding cost.

2. Source of funds

Meaning: Where the money comes from.
Role: Different sources behave differently under stress.
Interaction: Retail deposits, corporate deposits, commercial paper investors, and bondholders do not react the same way.
Practical importance: Source mix affects stability, pricing, and supervisory scrutiny.

3. Tenor or maturity

Meaning: How long the funding lasts before withdrawal or repayment.
Role: Short tenor increases refinancing pressure.
Interaction: A bank with long-term unsecured bonds may be safer than one with large overnight unsecured borrowings, even if both are “unsecured.”
Practical importance: Tenor is central to liquidity risk management.

4. Pricing and spread

Meaning: The interest rate or spread paid to lenders.
Role: Reflects market assessment of credit and liquidity risk.
Interaction: Deteriorating credit perception usually widens spreads and can shorten available tenor.
Practical importance: Rising unsecured funding cost can compress margins and signal stress.

5. Stability and run risk

Meaning: How likely the funding is to remain in place during stress.
Role: Determines practical liquidity value.
Interaction: Some unsecured deposits may be sticky; some wholesale balances may disappear quickly.
Practical importance: Stability matters more than the label alone.

6. Legal ranking and recovery

Meaning: The lender’s claim in insolvency or resolution.
Role: Senior unsecured lenders rank ahead of subordinated creditors but behind secured claims on pledged assets.
Interaction: Legal ranking influences pricing and investor appetite.
Practical importance: Not all unsecured instruments have the same loss profile.

7. Concentration

Meaning: How dependent the borrower is on a few providers.
Role: High concentration increases withdrawal risk.
Interaction: A large corporate depositor base can be more volatile than a broad retail base.
Practical importance: Diversification is as important as total amount.

8. Contingency replacement capacity

Meaning: How easily unsecured funding can be replaced if lost.
Role: A critical stress-management dimension.
Interaction: Replacement may come from secured funding, central bank facilities, asset sales, or committed lines.
Practical importance: Institutions with no replacement options are vulnerable to funding shocks.

6. Related Terms and Distinctions

Related Term	Relationship to Main Term	Key Difference	Common Confusion
Secured Funding	Direct opposite	Secured funding is backed by pledged collateral; unsecured funding is not	People assume secured funding is always safer in all conditions
Wholesale Funding	Overlapping category	Wholesale funding can be secured or unsecured; it refers to source/type, not collateral status	“Wholesale” is often mistakenly treated as automatically unsecured
Retail Deposits	Often part of unsecured funding	Deposits are usually unsecured liabilities of the bank, but behavior may be more stable than market borrowings	People forget that deposits are also funding
Unsecured Loan	Same economics from opposite viewpoint	“Loan” is from lender’s asset view; “funding” is from borrower’s liability view	Borrowing and lending perspectives get mixed up
Repo	Common secured alternative	Repo involves collateral, usually securities	Repo is sometimes confused with any short-term borrowing
Commercial Paper	Common form of unsecured funding	Usually short-term and market-based; may be difficult to roll in stress	Some forget that asset-backed commercial paper is a different structure
Senior Unsecured Debt	Specific subtype	Longer-term unsecured borrowing with senior ranking	Sometimes confused with subordinated debt or capital
Subordinated Debt	Related but lower-ranking liability	Also often unsecured, but ranks below senior unsecured debt	People confuse funding with regulatory capital instruments
Funding Liquidity	Related concept	Funding liquidity is the ability to obtain cash; unsecured funding is one source of that cash	The concept and the instrument category are different
Asset Encumbrance	Important connected concept	Encumbered assets are pledged; unsecured funding leaves assets unencumbered	Readers often miss why preserving unencumbered assets matters

7. Where It Is Used

Banking and treasury

This is the main setting for the term. Bank treasury desks monitor unsecured funding by:

• source
• tenor
• cost
• concentration
• stress sensitivity

Payments and settlement

Institutions may use unsecured balances or lines to meet payment and settlement obligations, especially when timing mismatches arise.

Corporate finance

Large corporates may issue unsecured commercial paper or senior unsecured notes to finance:

• working capital
• acquisitions
• general corporate purposes
• bridge funding needs

Accounting

In accounting, unsecured funding appears as liabilities such as:

• deposits
• borrowings
• notes payable
• debt securities issued

The absence of collateral affects legal rights, funding risk, and disclosures more than basic liability recognition.

Investing and equity analysis

Bank and bond investors study unsecured funding because it affects:

• liquidity risk
• earnings stability
• refinancing exposure
• valuation multiples
• default perception

Policy and regulation

Supervisors care because unstable unsecured funding can contribute to:

• runs
• contagion
• fire sales
• dependence on emergency liquidity
• systemic stress

Analytics and research

Researchers and analysts use funding mix data to assess:

• bank fragility
• market discipline
• transmission of monetary policy
• deposit behavior under stress

8. Use Cases

1. Daily liquidity management at a bank

• Who is using it: Bank treasury desk
• Objective: Meet daily funding needs at lowest prudent cost
• How the term is applied: Treasury tracks overnight and short-dated unsecured borrowings, deposit inflows, and maturing liabilities
• Expected outcome: Smooth day-to-day cash management
• Risks / limitations: Funding can dry up quickly if confidence falls

2. Seasonal working-capital funding through commercial paper

• Who is using it: Large corporate treasury team
• Objective: Finance inventory and receivables during a peak season
• How the term is applied: The company issues short-term unsecured paper to investors instead of pledging assets
• Expected outcome: Flexible, potentially cheaper short-term funding
• Risks / limitations: Market access may vanish during stress; refinancing risk is high

3. Funding diversification strategy

• Who is using it: Asset-liability management committee
• Objective: Avoid overdependence on one type of financing
• How the term is applied: Unsecured funding is measured alongside repo, central bank lines, and customer deposits
• Expected outcome: Better resilience and balanced maturity structure
• Risks / limitations: Diversification may increase complexity and cost

4. Contingency funding planning

• Who is using it: Liquidity risk team
• Objective: Estimate what happens if unsecured funding is not renewed
• How the term is applied: Stress scenarios apply runoff or non-renewal assumptions to unsecured categories
• Expected outcome: Clear action plan before a liquidity shock occurs
• Risks / limitations: Wrong assumptions can create false comfort

5. Issuing senior unsecured bonds

• Who is using it: Bank or financial institution CFO / treasury
• Objective: Raise term funding without encumbering assets
• How the term is applied: The issuer sells unsecured notes to institutional investors
• Expected outcome: Longer tenor and reduced short-term rollover risk
• Risks / limitations: Spread can be expensive; issuance window may close in volatile markets

6. Settlement support in payment systems

• Who is using it: Payment firms, banks, settlement participants
• Objective: Cover temporary liquidity needs for settlement completion
• How the term is applied: Unsecured intraday or overnight arrangements may support obligations where permitted
• Expected outcome: Timely payments and lower settlement disruption
• Risks / limitations: Intraday pressure can become overnight stress if liquidity is not replaced

9. Real-World Scenarios

A. Beginner scenario

• Background: A new finance student sees a bank balance sheet with deposits and bonds.
• Problem: The student thinks only bonds are funding.
• Application of the term: The teacher explains that deposits are also funding, and most of them are unsecured from the bank’s point of view.
• Decision taken: The student reclassifies funding sources into secured and unsecured buckets.
• Result: The balance sheet becomes easier to understand.
• Lesson learned: Unsecured funding is broader than bond issuance.

B. Business scenario

• Background: A retailer needs cash before a festive sales season.
• Problem: It wants funding without pledging inventory.
• Application of the term: The treasury team issues 90-day commercial paper, which is unsecured.
• Decision taken: It raises short-term funds in the market rather than using secured borrowing against inventory.
• Result: The company keeps assets free but must refinance at maturity.
• Lesson learned: Unsecured funding offers flexibility but creates rollover risk.

C. Investor / market scenario

• Background: An analyst is comparing two mid-sized banks.
• Problem: Both have similar profitability, but one seems riskier.
• Application of the term: The analyst finds Bank X depends heavily on short-term uninsured corporate deposits and overnight interbank borrowing, while Bank Y has more retail deposits and longer-term bonds.
• Decision taken: The analyst assigns a higher liquidity risk premium to Bank X.
• Result: Bank X receives a lower valuation multiple.
• Lesson learned: The composition of unsecured funding matters more than the headline amount alone.

D. Policy / government / regulatory scenario

• Background: A supervisor notices several institutions relying on short-dated wholesale funding.
• Problem: Market confidence is weakening, increasing systemic rollover risk.
• Application of the term: The regulator intensifies review of funding concentration, stress assumptions, and contingency funding plans.
• Decision taken: Institutions are asked to strengthen liquidity buffers and reduce dependence on runnable funding.
• Result: The system becomes more resilient, though funding cost may rise.
• Lesson learned: Unsecured funding is a macroprudential issue, not only a firm-level issue.

E. Advanced professional scenario

• Background: A bank treasurer is preparing a 30-day survival analysis during market stress.
• Problem: Large unsecured maturities cluster in the next two weeks.
• Application of the term: Treasury calculates non-renewal risk for commercial paper, expected outflows from concentrated corporate deposits, and replacement capacity from repo and central bank-eligible collateral.
• Decision taken: The bank pre-funds maturities, lengthens tenor, and increases secured backup capacity.
• Result: The projected funding gap narrows materially.
• Lesson learned: Advanced liquidity management treats unsecured funding as dynamic, not static.

10. Worked Examples

1. Simple conceptual example

A bank has two ways to raise overnight cash:

• Option A: Borrow from another bank without pledging securities
• Option B: Borrow through repo and pledge government bonds

Option A is unsecured funding.
Option B is secured funding.

The key question is simple: Was collateral pledged?

2. Practical business example

A manufacturing company needs short-term working capital for raw materials.

• It issues 90-day commercial paper of ₹50 crore.
• It does not pledge inventory or machinery.
• Investors buy the paper based on the company’s credit quality.

This is unsecured funding.

Practical implication: The company keeps assets unencumbered, but if the paper cannot be rolled over in 90 days, it needs another source of cash.

3. Numerical example

A bank has the following funding mix:

Funding Source	Amount ($ million)	Rate
Retail deposits	300	2.0%
Corporate deposits	200	4.0%
Commercial paper	150	5.5%
Senior unsecured notes	350	6.2%
Secured repo	250	4.8%

Step 1: Calculate total unsecured funding

Unsecured items here are:

• Retail deposits = 300
• Corporate deposits = 200
• Commercial paper = 150
• Senior unsecured notes = 350

So:

Total unsecured funding = 300 + 200 + 150 + 350 = 1,000

Step 2: Calculate total funding

Total funding = 1,000 + 250 = 1,250

Step 3: Calculate unsecured funding share

Formula:

[ \text{Unsecured Funding Share} = \frac{\text{Unsecured Funding}}{\text{Total Funding}} ]

[ = \frac{1{,}000}{1{,}250} = 0.80 = 80\% ]

Step 4: Calculate weighted average cost of unsecured funding

Formula:

[ \text{WACUF} = \frac{\sum (\text{Amount}_i \times \text{Rate}_i)}{\sum \text{Amount}_i} ]

Compute the weighted cost:

• 300 × 2.0% = 6.00
• 200 × 4.0% = 8.00
• 150 × 5.5% = 8.25
• 350 × 6.2% = 21.70

Total weighted cost = 43.95

[ \text{WACUF} = \frac{43.95}{1{,}000} = 4.395\% ]

Answer: Weighted average cost of unsecured funding = 4.40% approximately.

4. Advanced example: short-horizon funding gap

Assume the same bank expects the following over the next 30 days:

• Commercial paper maturing: $150 million
• Large corporate deposit outflow assumption: $60 million
• Other unsecured interbank maturity: $40 million

Expected unsecured outflow:

[ 150 + 60 + 40 = 250 ]

Available replacement sources:

• New unsecured issuance likely: $70 million
• Repo capacity against eligible collateral: $90 million
• Internal cash buffer available: $60 million

Expected replacement:

[ 70 + 90 + 60 = 220 ]

Funding gap

[ \text{Funding Gap} = 250 – 220 = 30 ]

Interpretation: The bank has a projected $30 million gap over 30 days unless it raises more funding, sells assets, or reduces liquidity needs.

11. Formula / Model / Methodology

There is no single universal legal formula for unsecured funding. In practice, firms and analysts use a set of management metrics.

1. Unsecured Funding Share

Formula:

[ \text{UF Share} = \frac{UF}{TF} ]

Variables:

• ( UF ) = total unsecured funding
• ( TF ) = total funding

Interpretation:

Shows how much of the funding base is unsecured. A high number is not automatically bad. It must be interpreted with:

• source mix
• tenor
• stability
• concentration
• backup liquidity

Sample calculation:

[ UF = 1{,}000,\quad TF = 1{,}250 ]

[ \text{UF Share} = \frac{1{,}000}{1{,}250} = 80\% ]

Common mistakes:

• excluding deposits without saying so
• mixing funding and capital
• comparing firms with different definitions

Limitations:

It says nothing by itself about maturity or stickiness.

2. Weighted Average Cost of Unsecured Funding

Formula:

[ \text{WACUF} = \frac{\sum (UF_i \times r_i)}{\sum UF_i} ]

Variables:

• ( UF_i ) = amount of unsecured funding source (i)
• ( r_i ) = effective annualized cost of source (i)

Interpretation:

Measures the average cost paid across unsecured sources.

Sample calculation:

Using total weighted cost 43.95 and total unsecured funding 1,000:

[ \text{WACUF} = \frac{43.95}{1{,}000} = 4.395\% ]

Common mistakes:

• using headline coupon instead of effective funding cost
• mixing old fixed-rate debt with current market spreads incorrectly
• ignoring floating-rate resets

Limitations:

Cost does not equal risk. A low-cost funding base can still be fragile.

3. Short-Term Unsecured Funding Ratio

Formula:

[ \text{STUF Ratio} = \frac{UF_{\leq h}}{UF} ]

Variables:

• ( UF_{\leq h} ) = unsecured funding due, withdrawable, or behaviorally vulnerable within horizon (h)
• ( UF ) = total unsecured funding

Interpretation:

Shows how much unsecured funding is exposed to near-term rollover or withdrawal risk.

Sample calculation:

If $350 million of unsecured funding is considered vulnerable within one year:

[ \text{STUF Ratio} = \frac{350}{1{,}000} = 35\% ]

Common mistakes:

• mixing contractual maturity with behavioral runoff
• treating all deposits as equally stable
• changing horizon without disclosure

Limitations:

The result depends heavily on definitions and assumptions.

4. Stressed Unsecured Outflow Estimate

Formula:

[ \text{SUO}_h = \sum (B_i \times p_i) ]

Variables:

• ( B_i ) = balance of unsecured funding category (i)
• ( p_i ) = assumed runoff or non-renewal percentage over horizon (h)

Interpretation:

Estimates outflow under a stress scenario.

Sample calculation:

• Corporate deposits = 200, assumed runoff 30%
• Commercial paper = 150, assumed non-renewal 100%

[ (200 \times 30\%) + (150 \times 100\%) = 60 + 150 = 210 ]

Answer: Stressed outflow = 210

Common mistakes:

• inventing regulatory runoff percentages
• using optimistic assumptions in a severe scenario
• double-counting the same outflow in multiple buckets

Limitations:

Assumptions must match the actual stress design and applicable rulebook.

5. Funding Concentration Ratio

Formula:

[ \text{Concentration Ratio} = \frac{\text{Top }n\text{ unsecured providers}}{UF} ]

Variables:

• Top (n) unsecured providers = balances from the largest (n) counterparties or depositor groups
• ( UF ) = total unsecured funding

Interpretation:

Measures dependence on a small number of providers.

Sample calculation:

If top 5 providers account for 180 and total unsecured funding is 1,000:

[ \frac{180}{1{,}000} = 18\% ]

Common mistakes:

• measuring only legal entities, not economic groups
• ignoring sector concentration
• ignoring correlated behavior among depositors

Limitations:

Low top-5 concentration does not always mean low systemic concentration.

6. Net Funding Gap over a Time Horizon

Formula:

[ \text{NFG}_h = \text{Expected Uses}_h – \text{Expected Sources}_h ]

Variables:

• Expected Uses = maturities, outflows, collateral calls, settlement needs
• Expected Sources = cash, renewals, secured capacity, asset sales, committed lines

Interpretation:

A positive number means a shortfall.

Sample calculation:

Expected uses over 30 days = 250
Expected sources over 30 days = 220

[ \text{NFG}_{30d} = 250 – 220 = 30 ]

Answer: 30 shortfall

Common mistakes:

• assuming full rollover in a stress case
• counting unavailable collateral as a source
• forgetting contingent liquidity needs

Limitations:

This is scenario-based, not a fixed accounting number.

12. Algorithms / Analytical Patterns / Decision Logic

1. Maturity ladder analysis

What it is: A time-bucket view of cash inflows, outflows, and maturing funding.
Why it matters: It shows when unsecured funding pressure hits.
When to use it: Daily treasury, stress testing, board reporting.
Limitations: Contractual maturity alone can mislead if deposit behavior differs from legal maturity.

2. Survival horizon analysis

What it is: Estimating how many days the institution can survive without fresh unsecured funding.
Why it matters: It turns abstract liquidity risk into a practical timeline.
When to use it: Stress events, contingency planning, regulator review.
Limitations: Very sensitive to runoff assumptions and asset monetization assumptions.

3. Funding diversification scorecard

What it is: A structured review of funding by source, tenor, currency, market, and concentration.
Why it matters: Dependence on one channel creates fragility.
When to use it: Strategic treasury planning and ALCO review.
Limitations: Scorecards can look healthy while market sentiment deteriorates quickly.

4. Secured-vs-unsecured funding decision tree

What it is: A framework to decide whether to raise funds with or without collateral.
Why it matters: It balances cost, asset encumbrance, speed, and liquidity resilience.
When to use it: New issuance, stress management, balance sheet optimization.
Limitations: Market access can change faster than the model assumes.

5. Early-warning liquidity dashboard

What it is: A monitoring tool for spreads, renewal rates, deposit outflows, and lender concentration.
Why it matters: Funding stress often appears in small signals before full market closure.
When to use it: Ongoing treasury risk monitoring.
Limitations: Indicators can produce false positives in volatile markets.

13. Regulatory / Government / Policy Context

Unsecured funding is highly relevant to prudential supervision, but exact treatment depends on jurisdiction and institution type.

Global / Basel perspective

Basel liquidity standards focus on the stability, maturity, and run-off behavior of liabilities. Unsecured funding matters because some unsecured sources can be confidence-sensitive and quickly withdrawable.

Key regulatory themes include:

• liquidity coverage over short stress horizons
• stable funding over longer horizons
• concentration risk
• contingency funding plans
• stress testing
• intraday liquidity management

Important caution: Basel-style treatment depends on category definitions. Not all unsecured funding is treated the same way.

United States

In the US, the term is relevant in the supervisory work of banking regulators and the central bank. Common areas of focus include:

• reliance on uninsured and concentrated deposits
• wholesale funding dependence
• stress testing and contingency funding planning
• resolution preparedness
• unsecured debt issuance for certain large institutions

Senior unsecured debt can also have resolution relevance for some large banking organizations, but not all unsecured liabilities qualify for loss-absorbing requirements. The exact applicability depends on institution type and current rules.

European Union

In the EU, unsecured funding is relevant under the broader prudential and reporting framework, including:

• liquidity standards
• maturity reporting
• resolution planning
• minimum loss-absorbing debt requirements for relevant institutions

Legal distinctions such as senior preferred and senior non-preferred debt can matter in resolution and investor ranking.

United Kingdom

In the UK, unsecured funding is monitored in:

• liquidity risk management
• internal liquidity adequacy assessments
• resolution planning
• longer-term debt structure for eligible firms

As elsewhere, supervisors care about whether funding is:

• stable or confidence-sensitive
• concentrated or diversified