Open

Coming up

Don't miss

Replay


LATEST SHOWS

FASHION

Paris, Haute Couture Fall/Winter 2014-2015.

Read more

REPORTERS

Exclusive: an unlikely victim of the 'War on Terror'

Read more

AFRICA NEWS

2014-07-11 21:47 AFRICA NEWS

Read more

MEDIAWATCH

Finally, a good use for new app "Yo"

Read more

THE WORLD THIS WEEK

The World This Week - 11 July 2014 (part 2)

Read more

THE WORLD THIS WEEK

The World This Week - 11 July 2014

Read more

#THE 51%

Sweden: A Feminist's Paradise?

Read more

FRANCE IN FOCUS

Politics: parties under pressure

Read more

FOCUS

In Burma, the rise of radical Buddhism

Read more

  • UN Security Council calls for Israeli-Palestinian ceasefire

    Read more

  • The third-place playoff: the World Cup game no one wants to play

    Read more

  • France’s Kadri wins eighth stage at Tour de France

    Read more

  • Legal challenge to French mayor’s ban of Muslim hijab on beach

    Read more

  • Last of the Ramones, Tommy Ramone, dies aged 62

    Read more

  • Video: Outrage in wake of deadly Casablanca buildings collapse

    Read more

  • Iraqi forces ‘executed prisoners in reprisal’ for ISIS killings

    Read more

  • Ukraine promises retaliation after rebel assault

    Read more

  • Putin revives old Cuban flame and eyes Latin American minerals

    Read more

  • Kerry holds all-night talks with Afghan presidential rivals

    Read more

  • Amazon snubs French free delivery ban with one-cent charge

    Read more

  • Cleveland's NBA fans hail 'return of king' LeBron James

    Read more

  • Exclusive: an unlikely victim of the 'War on Terror'

    Read more

  • Magnitude 6.8 quake, small tsunami hit east Japan

    Read more

  • Suspect in Brussels Jewish Museum shooting drops extradition appeal

    Read more

Business

Banks win more flexible liquidity rules from Basel

©

Text by News Wires

Latest update : 2013-01-07

Global banking regulators agreed on Sunday to ease liquidity rules in an attempt to improve banks’ abilities to survive future financial crises, and gave them until 2019 to comply fully.

International banking regulators agreed Sunday on global rules meant to ensure banks keep enough cash in hand to survive future market crises, and gave banks until 2019 to comply fully.

The rules will require banks in future to hold enough cash, and assets such as equities, corporate and government bonds that can easily be sold, to tide them over during an acute 30-day crisis.

The body that oversees the Basel Committee on Banking Supervision, which sets international rules, said Sunday that they will have to hold 60 percent of that amount when the rules start being phased in on Jan. 1, 2015; that will increase by 10 percentage points every year until the standards take full effect at the beginning of 2019.

The oversight body’s head, Bank of England governor Mervyn King, said after regulators met in Basel, Switzerland, that the timeframe ensures the new standards "will in no way hinder the ability of the global banking system to finance the recovery." The hope is that it will prevent lenders from becoming over-reliant in future on help from central banks, which have stepped in over recent years to keep the financial system flush with cash.

King said that "the vast majority" of the world’s biggest banks "already hold liquid assets well above the minimum required by this standard."

The rules are part of wider efforts to prevent another shock to the financial system like that prompted by Lehman Brothers’ 2008 collapse, which led to taxpayer-funded bailouts of banks in the U.S. and Europe.

They are part of the so-called Basel III package of reforms. That package will require lenders to increase their highest-quality capital - such as equity and cash reserves - gradually from 2 percent of the risky assets they hold to 7 percent by 2019.

(AP)

Date created : 2013-01-07

  • BANKING

    Oldest Swiss bank to close in US tax evasion case

    Read more

  • FINANCE

    UBS hit with $1.5bn fine for manipulating Libor rates

    Read more

  • EUROPE

    EU nations agree to eurozone banking union

    Read more

Comments

COMMENT(S)