Proposed liquidity rules for US financial institutions could
exceed international standards following the Basel oversight
committee's promise to ease requirements in times of stress.
The Federal Reserve released its
long-awaited prudential requirements for systemically important
financial institutions (Sifis) on December 20.
Since then, institutions likely to
be designated Sifis have assessed compliance requirements and
the impact on their businesses. But the Basel committee's weekend announcement that it
plans to allow banks to dip into liquidity buffers in times of
stress raises new level-playing-field concerns.
"It's possible that US banks could have...