RR Phantom
Location : Wasted Space Job/hobbies : Cayman Islands Actuary
| Subject: Good news: Banks win more flexible liquidity rules from Basel Mon Jan 07, 2013 2:07 am | |
| International financial regulators have eased rules on minimum quantities of cash and liquid assets all banks must hold, set to take effect in 2015.
The agreement, by the body that oversees the Basel Committee on Banking Supervision, is an attempt to make banks less vulnerable to runs.
The new "liquidity coverage ratio" will be phased in from 2015 and take full effect four years later.
Analysts say the rules just announced are more flexible than a draft version.
The new rules are part of efforts to ensure banks survive financial shocks such as those around the times of the 2007 run on Northern Rock in the UK, or by the 2008 collapse of Lehman Brothers in the US.
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