Basel Committee won't include equities in LCR

06/13/2011 | Risk.net (subscription required)

The Basel Committee on Banking Supervision is maintaining its stance that equities will not be included in the liquidity-coverage ratio, said Secretary-General Stefan Walter. "While we recognize that certain equities are liquid, high-quality liquid assets in the LCR must be able to endure a period of stress without incurring large fire-sale discounts," Walter said. "The liquidity standards clearly outline the characteristics for high-quality liquid assets. Equities fail to meet these characteristics."

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