Global Regulators To Amend New Rules on Bank Liquidity

The farce continues :

DOW JONES NEWSWIRES

The Basel Committee on Banking Supervision is looking to soften the technical definitions in the "liquidity coverage ratio," which requires banks globally to hold enough assets to withstand a 30-day run on their funding, the Financial Times reported Monday citing people familiar with the discussions.

Banks have complained that the new Basel III standards on liquidity, to be implemented in 2015, would force them to sharply curtail lending to consumers and businesses, the newspaper said.

The planned changes would have the effect of reducing how much liquidity banks have to hold, and allow them to count more corporate and covered bonds toward the total, the people told the newspaper.