Northern Rock funded mortgages with short-term borrowing and suffered a bank run
Northern Rock · Mortgage bank (listed)
The case in brief
Visible before detection
Checks that could have surfaced it, on hindsight
Drawing power vs books
Would have compared lending against funding stability.
Can mislead when: CARO is annual, so the signal comes late. It covers only borrowers above the ₹5 crore limit.
Operating-metric verification
Would have measured the share of wholesale funding.
Can mislead when: Contract staff do not appear in EPFO. Vahan access needs licensed APIs. Some businesses have no physical trace.
Unit economics & burn
Would have stress-tested funding costs.
Can mislead when: Cost allocation is a judgement call. Kubr shows its assumptions and lets the user change them.
Where Kubr services would have helped
Financial diligence
Offered in India- C9 Would have stress-tested funding costs.
- C10 Would have measured the share of wholesale funding.
- C14 Would have compared lending against funding stability.
Model check
Offered in India- C9 Would have stress-tested funding costs.
- C10 Would have measured the share of wholesale funding.
- C14 Would have compared lending against funding stability.
Valuation context
Offered in India- C9 Would have stress-tested funding costs.
Portfolio monitor
Offered in India- C10 Would have measured the share of wholesale funding.
Mapped from the checks each service runs. A hindsight reading of public records, not a promise that the failure would have been found.
Same pattern
A summary of public documents. It reports what the sources say. It is not Kubr's finding and not a statement of guilt.