Why US banks might have tougher liquidity requirements

Author: Danielle Myles | Published: 11 Jan 2012
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...