Basel III liquidity rules shaking up the corporate deposit market
Corporates have huge cash reserves, and banks are on the hunt for stable sources of funding. That combination has been a shot in the arm for the sleepy corporate deposit market, and a chance for treasurers to earn better yields than they are used to. By Michael Watt
It didn't take long for product design to catch up with Basel III. The rules were only finalised in December last year, but have already resulted in a new form of deposit being marketed to corporates. It ties customers into deposits lasting a year or more, while giving them an option to withdraw their cash at 35 days’ notice – meaning the funds aren’t caught by the 30-day maturity threshold written into the first of Basel’s two liquidity measures, the liquidity coverage ratio (LCR). Regulators
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
Most read
- Revealed: the three EU banks applying for IMA approval
- Top 10 operational risks for 2024
- Industry urges focus on initial margin instead of intraday VM