Basel III's LCR requirements eased to facilitate recovery of global banking system
The Clearing House, a US-based banking body, has noted weaknesses in Basel III’s LCR recommendation and has pushed for revisions, in view of the industry’s struggle to achieve Basel III compliance. January 09, 2013 | Esther TanAnti-Basel III sentiments have been building up, especially now that the supposed implementation date of January 1st 2013 has come and gone. According to the Bank for International Settlements’ (BIS) Basel III implementation progress report, only 11 countries have published finalised regulations although the dates for implementation still vary. The Clearing House, which represents 11 of the largest US commercial banks, has been involved in a concerted push to have Basel III regulations relaxed. The liquidity shortfall is only partially met Under the Basel III accord, banks are to adhere to the stated liquidity coverage ratio (LCR) requirements by January 2015. US banks are arguing that despite their efforts to increase liquid holdings by $700 billion, they would still have to raise the difference of another $840 billion in liquid assets to meet the identified shortfall stated at the end of 2010. Instead of seeking further compliance with Basel III guidelines, these US banks want the rules eased. Bob Chakravorti, chief economist at The Clearing House, is in agreement, stating that the US banking industry is now significantly more liquid than it was just two years ago. Please login to read the complete article. If you already have an account, you can login now or subscribe/register.
Categories: Basel III, Regulation, Risk and Regulationbasel III,riskregulation,Risk and Regulation, Basel III,Regulation,Risk and Regulation, Keywords:The Clearing House, BCBS, Liquidity Coverage Ratio, BIS, Bob Chakravorti, Federal Home Loan Bank, European Central Bank, Liquidity Risk, Mervyn King, GHOS The Clearing House, BCBS, Liquidity Coverage Ratio, BIS, Bob Chakravorti, Federal Home Loan Bank, European Central Bank, Liquidity Risk, Mervyn King, GHOS
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