Banks are told not to leverage LCR's delayed introduction

01/9/2013 | Risk.net (subscription required)

National regulators are telling banks they cannot shrink buffers already put in place to comply with Basel III's liquidity-coverage ratio simply because implementation has been changed to a staggered timeline. "It's still possible the liquidity requirements ... are in fact providing an incentive for banks to either deleverage or expand their lending by less than they would have otherwise done," Bank of England Governor Mervyn King said.

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