LONDON – The Basel Committee of regulators from nearly 30 countries agreed on Sunday to ease a new rule forcing banks to build cash buffers to protect against any month-long market squeeze.
The Liquidity Coverage Ratio (LCR) rule is one of the world's main regulatory responses to the financial crisis. The following are the main changes to an earlier draft.
At least 60 percent of the buffer must still be in highly-rated government debt and the newly eligible assets cannot count for more than 15 percent of the overall buffer.
(Reporting by Huw Jones; editing by Philippa Fletcher)