The main limitation is that liquidity risk regulation are not adequate. As recent example shows the reality is that risk is underestimated under the fake premis

The main limitation is that liquidity risk regulation are not adequate. As recent example shows the reality is that risk is underestimated under the fake premise of accounting rules. Asset liability mismatch is the survival risk for a bank. Once you start creating an imbalance that forces to take action by seliing assets it is just creating a negative cycle. Also now people will ralize that treasury is not risk free.