The Basel Committees proposed relaxation of liquidity
and capital guidelines is good news for banks. But regulators
must still provide more clarity, and be careful not to water
down their original intentions too much.
On Monday, the Committee released its latest set of
amendments. Changes from the previous draft include an
expansion of the definition of eligible liquid assets, reducing
the size of countercyclical buffers, and delaying the
implementation of key measures such as the long-term leverage
Since the last set of proposed guidelines was released in
December, banks have been lobbying hard for changes to be
Regulators seem to have realised theyd overshot
the mark, and are pulling back, said Mark Nicolaides, a
partner at Latham & Watkins in London.
With the earlier proposals the Committee wasnt
listening to the banks concerns. Now, though many of the
proposals are still the same, there have been...