Bank treasurers warn on ‘racy’ EU liquidity rules

Bank treasurers have raised concerns about higher thresholds for some assets in Europe's liquidity coverage ratio, warning it could allow banks to take too much risk

Nationwide: group treasurer wary of EU liquidity rules

Banks may be allowed to rely too heavily on assets that are not completely liquid, bank treasurers warned yesterday, if Europe's version of the liquidity coverage ratio (LCR) relaxes limits set by the Basel Committee on Banking Supervision.

The LCR requires banks to hold a stock of high-quality liquid assets (HQLA) that can be sold quickly to bring in cash. Europe's version of the rules, due to be published imminently, is expected to contain more generous allocation limits than the baseline

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