Why tougher liquidity rules may not reduce the risk of bank runs
EU regulator and industry experts say LCR reform is the wrong response to Credit Suisse and SVB
In June last year, the Swiss Federal Council decided that the country’s largest banks should hold enough liquid assets to cope with 90 days of depositor outflows, instead of the 30 days required by the Basel Committee on Banking Supervision. There was just one minor problem.
The provision was due to take effect in January 2024.
There is little sign that Credit Suisse responded promptly to the
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