Basle bank liquidity rules watered down after intense lobbying by banks.

January 6, 2013 Finance 

FTThe first ever global liquidity standards will be less onerous than expected and not be fully enforced until 2019, four years later than expected. ““Aimed at preventing a repeat of the 2008 bank collapses, the “liquidity coverage ratio” (LCR) announced on Sunday marks the first time that global regulators have sought to require individual banks to hold enough cash and easy-to-sell assets to allow them to survive a short-term market crisis. The measure is the second plank of the Basel III reform package. …The final rule approved by the supervisors of the Basel Committee on Banking Supervision is significantly more flexible than the draft version put forward more than two years ago. …When the Basel group, which includes representatives from 27 major financial centres, first agreed in 2010 to put in place liquidity rules, the draft said that only government bonds and top-quality corporate bonds would count toward the buffers. But the industry lobbied hard to get the rules watered down, arguing that the draft version would tie banks too closely to sovereign debt and constrain their ability to lend to the wider economy.”


Comments are closed.

  • The Winning of The Carbon War

    Humanity is in a race, a kind of civil war. Believers in a safe future fuelled by endless sunlight and related forms of clean energy combat defenders of finite carbon fuels careless of the impact they have on the world by clinging to coal, oil, and gas. Jeremy Leggett fought for the light side for a quarter of a century as it lost battle after battle to the dark side. Then, in 2013, the tide began to turn. By 2015, it was clear the light side could win the war. Leggett’s diary from the front lines tells one person’s story of those turnaround years, and what they can mean for the world.
  • The book in a minute

  • Introducing The Energy Of Nations

    Download chapter one, read the reviews and find out how to order here.