Bank of Queensland chief executive David Liddy was promoting the idea yesterday that the bank is developing strategies to find new sources of "committed and sticky" funding, but the reality is that BOQ has an increasing exposure to short-term funding.In recent years BOQ has come increasingly to rely on the securitisation market for funding. With that market closed it has had to find other sources.In the second half of the 2006/07 financial year securitisation made up 28 per cent of the bank's funding and long-term wholesale funding made up 14 per cent.In the first half of the 2007/08 financial year the contribution to funding from securitisation fell five percentage points to 23 per cent and long-term wholesale funding fell three percentage points to 11 per cent.Liddy said the bank had a strategy of increasing retail deposits, which went from 43 per cent of funding in 2007 to 46 per cent in the latest half.The bank will change the commission structure paid to branch owners to weight their earnings toward deposit gathering rather than the sale of new home loans.The contribution from short-term wholesale funding went from 11 to 14 per cent during the same period.Moody's Investors Service issued a report on the Australian banking sector this week in which it said that increased short-term bank funding could have a negative impact on bank ratings. It is concerned that the shortening of new issue tenors will increase the volume of funding that has to be rolled over in 2009, when the markets might still be illiquid.BOQ has a $300 million euro note program maturing in July 2008 and a debt instrument worth close to $400 million maturing in July next year.The bank said it will undertake a share purchase plan (or offer to retail investors) later this year, though it isn't clear how much capital it aims to raise. Another option open to the bank is to sell the portfolio of land development properties that was always part of the business of Home Building Society.