Basel liquidity ratios continue to worry South African banks

Despite amendments to the Basel Committee’s controversial liquidity ratios, South African banks still fall well short of the proposed standards. Consequently, regulators and banks are looking for ways to help meet the requirements. What options are on the table? Matt Cameron reports

Seven months after first revealing its controversial liquidity risk ratios, the Basel Committee on Banking Supervision issued a set of amendments on July 26, intended to make the liquidity rules more palatable to the international banking community. The impact on South African banks, however, has been marginal at best. Domestic financial institutions still have little hope of meeting the minimum ratios unless further major changes are made to the rules.

Although new modifications are being