BLOOMBERG: Banks Win Watered Down Liquidity Rule After Basel Group DealSubmitted by emalvini on Sun, 01/06/2013 - 15:30
BLOOMBERG: Banks Win Watered Down Liquidity Rule After Basel Group Deal
By Jim Brunsden & Giles Broom - Jan 6, 2013 10:59 AM PT
Global central bank chiefs agreed to water down and delay a planned bank liquidity rule to counter warnings that the proposal would strangle lending and stifle the economic recovery.
Lenders will be allowed to use an expanded range of assets including some equities and securitized mortgage debt to meet the so-called liquidity coverage ratio, or LCR, following a deal struck by regulatory chiefs meeting today in Basel, Switzerland. Banks will also have an extra four years to fully comply with the measure.
Bank of England Governor Mervyn King said, “For the first time in regulatory history we have a truly global minimum standard for bank liquidity.”