Raft of changes could shrink Basel III liquidity buffers


Banks will find it easier to comply with a new global liquidity standard if the Basel Committee on Banking Supervision ratifies a host of amendments currently being discussed by its working group on liquidity. An impact study carried out by the group, and described to Risk by a source close to the process, shows the total shortfall in the industry's buffer of liquid assets would be cut by 14% if changes to the liquidity coverage ratio (LCR) are implemented in full. Whether that is enough to a