Implementation of LCR rule postponed
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Implementation of LCR rule postponed

Implementation of LCR rule postponed

Global central bank chiefs have agreed to delay the implementation of a planned bank liquidity rule to counter warnings that the proposal would strangle lending and stifle the economic recovery, Bloomberg has reported. Lenders will be allowed to use an expanded range of assets including some equities and securitized mortgage debt to meet the liquidity coverage ratio (LCR), following a deal struck by regulatory chiefs meeting in Basel, Switzerland. Banks will also have an extra four years to fully comply with the measure. The LCR would force banks to hold enough easy-to-sell assets to survive a 30-day credit squeeze. It's a key component of a package of capital and liquidity measures, known as Basel III, drawn up to avoid a repeat of the 2008 financial crisis.

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    AMEinfo Staff

    AMEinfo staff members report business news and views from across the Middle East and North Africa region, and analyse global events impacting the region today.

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