Sovereign debt crisis undermines LCR, critics say

Bankers at Eurofi conference in Wroclaw, Poland call for a wider range of assets to be eligible for Basel III's liquidity coverage ratio

The sovereign debt crisis demonstrates that government bonds are not always safe or liquid and should not be the key component of the Basel III liquidity coverage ratio (LCR) – or so bank panellists argued at the Eurofi conference in Wroclaw, Poland this morning. Regulators should allow a wider range of assets to count towards the ratio, banks said.

"The sovereign debt crisis has taught us that sovereign bonds are not always liquid and secure. So we need to carefully examine whether the