In a move that observers suggest is the latest instance of regulators diluting their landmark 2010 response to the global financial crisis, global banking regulators have eased a key element of their plan once designed to create a safer financial system. The rule was initially designed to ensure that big banks could survive a future financial crisis without running short of cash. Following heavy industry pressure, the Basel Committee has now made it easier for banks to meet the rule, known as the "liquidity coverage ratio." They have also given banks four more years to meet capital requirements, delaying its full implementation until 2019. The banking industry argued that the original rule, which required banks to come up with trillions of dollars of liquidity, would lead them to dramatically cut back lending. Banks also wanted a broader array of assets to count as “high-quality liquid assets.” The rule drafted in 2010 pointed largely to governmen... Read full story on Wall Street & Technology


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