# kaal:claim:2470008-010

**Claim.** Because private fund advisers supply liquidity and perform liquidity transformation in the manner of banks, the vulnerabilities their bank like activities create can carry large consequences for financial stability.

**Type.** mechanism  **Support.** argued

**Holds when.**

- private fund advisers engaging in bank like activities
- use of leverage, liquidity transformation, or funding mismatches

**Source quote.**

> Like banks, private fund advisers can provide liquidity to clients and to financial markets and engage in various forms of liquidity transformation. The vulnerabilities created by private fund advisers engaging in bank-like activities may have large implications for financial stability.

**From.** Wulf A. Kaal, *The Systemic Risk of Private Funds after the Dodd-Frank Act* (2014), II. Systemic Risk of Private Funds

**Cite as.** Wulf A. Kaal, The Systemic Risk of Private Funds after the Dodd-Frank Act (2014). SSRN: https://ssrn.com/abstract=2470008

**Verify.** sha256 of source PDF `5f68a401c935527d89658171e9b48a4d186710459aaf2bdbead755507394e8c9` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202014%20-%20The%20Systemic%20Risk%20of%20Private%20Funds%20after%20the%20Dodd-Frank%20Act.pdf

**Topics.** systemic-risk, defi, private-funds

**Keywords.** shadow-banking, liquidity-transformation, financial-stability, private-funds

**Related claims.**

- restated_by: https://wulfkaal.github.io/claims/2748096-009

**Canonical form.** This markdown file is the canonical hashed representation of the claim. Its sha256 is the content hash used for attestation.