Banks moving to build liquidity ahead of Basel III

Building up buffers


Traders are coming to terms with a multitude of changes in the post-crisis world. Among the most profound is the need to think about the liquidity and funding implications of every trade and every loan. This is having a major impact on the market in Europe, in particular. In 2006, European corporates took out €945 billion worth of bank loans, compared with €455 billion in corporate bond issuance. Last year, the number of loans dropped to €338 billion versus €557 billion in bonds. In an environme

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