Bank Liquidity Requirements: Basel Oversight Committee Endorses Revised Liquidity Standards and Extends Fully Phased-In Compliance to 2019
On January 6, the Group of Central Bank Governors and Heads of Supervision, the oversight body for the Basel Committee on Bank Supervision, endorsed a revised formulation of the new minimum liquidity standard, known as the liquidity coverage ratio (“LCR”), one of two quantitative liquidity measures approved in December 2010 as part of Basel III. Recognizing the need to continue to support the worldwide economic recovery, while ensuring that global banks maintain liquid assets sufficient to meet their short-term cash needs during times of stress, members of this Basel oversight group supported a package that, among other things, extends the timetable for full phase-in of the LCR from 2015 to 2019.