Bank of Queensland will take a flexible approach to raising secured funding over the remainder of the bank's financial year.Stuart Grimshaw, managing director of the bank, told a business function yesterday that "while we don't have to pursue unsecured debt funding issues for this financial year we may do so if the opportunity arose reflecting both term and price."He said BOQ "will continue to look at the securitised market which we have traditionally utilised and we are seeing other banks pursuing this route also - although via the covered bond market."BOQ has previously outlined plans to reduce secured funding, in the form of mortgage-backed securities, to 10 per cent of liabilities, including equity, from 18 per cent.The bank sold A$2.5 billion in RMBS over two transactions in 2010 but has sold no RMBS so far this year.Grimshaw said there was "the potential for the price of funding to increase … given the regulator increasingly seeking longer duration in the funding books of banks and investors wanting shorter duration."Grimshaw spoke at an Australian Institute of Company Directors function in Brisbane.