Regulators relax Basel liquidity rules for banks

International banks have given greater flexibility and a longer deadline to meet Basel III liquidity rules.

Banks now have until 2019 to build up cash buffers, known as the 'liquidity coverage ratio', to shield against a potential short-term market crisis. Previously, banks were given a January 2015 deadline to comply with the new rules. However, last night the Basel Committee on Bank Supervision extended the deadline to give banks more time to adjust to the new regime. Banks now only need 60% of the necessary short-term funding in 2015, and have until 2019 to fully implement the liquid coverage ratio. Banks have also been granted more flexibility regarding which assets they can hold....