Open

Coming up

Don't miss

Replay


LATEST SHOWS

DEBATE

Nigeria: One Hundred Days and Counting

Read more

FOCUS

Can Chancellor Merkel's winning streak last?

Read more

FOCUS

Hunger in a fertile land...

Read more

AFRICA NEWS

Central African Republic: Brazzaville peace talks suspended

Read more

ENCORE!

High-tech acting king Andy Serkis on Dawn of the Planet of the Apes

Read more

REPORTERS

Hong Kong in rebellion against the 'motherland'

Read more

TALKING EUROPE

Dalia Grybauskaite, President of the Republic of Lithuania

Read more

MIDDLE EAST MATTERS

Gaza: children caught up in the conflict

Read more

IN THE PAPERS

Was the UN chief’s speech in Tel Aviv really a 'shameful message'?

Read more

  • Live: Pro-Palestinian protest staged in Paris under tight security

    Read more

  • UN human rights chief blasts Israel-Gaza ‘war crimes’

    Read more

  • Bomb attacks leave scores dead in north Nigeria

    Read more

  • Gaza protests: ‘France imported the Mideast conflict a long time ago’

    Read more

  • Poland’s Rafal Majka wins 17th stage of Tour de France

    Read more

  • Remains of Flight MH17 victims arrive in the Netherlands

    Read more

  • Two Ukrainian fighter jets shot down over rebel-held territory

    Read more

  • TransAsia Airways Taiwan crash leaves dozens dead

    Read more

  • Video: Fear, death and mourning in Gaza’s Khan Younis

    Read more

  • Young riders raise French hopes for Tour de France

    Read more

  • Defying UK, France to proceed with warships sale to Russia

    Read more

  • US courts issue conflicting reports on Obamacare

    Read more

  • Video: Lebanon fears fallout from regional turmoil

    Read more

  • Widodo wins Indonesian presidential election

    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

COMMENT(S)