Basel leniency could harm UK banks

Author: | Published: 29 Jul 2010

The Basel Committee’s plans to relax liquidity restrictions will mean that the UK Financial Services Authority’s regime will be stricter, and could leave UK banks at a competitive disadvantage.

Under the most recent Basel proposals, released on Monday, the definitions of what will count as eligible assets for liquidity purposes has been extended beyond the package put forward last December.

The changes allow minority interests in other financial institutions, mortgage service...