Basel III liquid asset definitions loosened in CRD IV draft

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The European Commission (EC) has opted for a less prescriptive definition of liquid assets in its version of the Basel III liquidity coverage ratio (LCR), according to the latest draft of the capital requirements directive (CRD IV) – legislation that will determine how European banks implement the new Basel capital and liquidity standards.

According to a draft of CRD IV seen by Risk, liquid assets would include "transferable assets that are of extremely high liquidity and credit quality" and

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