Regulators wary of new corporate deposits that sit outside Basel III LCR

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Bank supervisors say they are keeping a close eye on a new generation of corporate deposits that use a rolling 35-day option to remain out of reach of the 30-day threshold embedded in the Basel III liquidity coverage ratio (LCR) – one of the first products designed in response to the new rules.

"From a regulatory and supervisory perspective, we shouldn't look at banks using these types of products as being anything other than reliant on short-term funding. The 35-day option deposit sits just

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