Regulators poised to soften new bank rules

Article reports that global bank regulators were preparing to ease new rules in September 2011 that would require banks to hold more liquid assets to withstand a funding crunch in a crisis.

The move follows complaints from banks that the new Basel III standards on liquidity – the first international rules of their kind – would force them to sharply curtail lending to consumers and businesses.

A JPMorgan analysis concluded that the new liquidity coverage ratio is the most 'painful' piece of regulation to hit the sector, and would cost European banks nearly 12% of their 2012 earnings on average.

ESO: Background information: Brussels unveils tough bank capital rules http://www.europeansources.info/record/fight-expected-over-eu-bank-capital-rules-brussels-unveils-tough-bank-capital-rules/

Bank for International Settlements (BIS): Monetary & financial stability: Basel Committee on Banking Supervision http://www.bis.org/bcbs/

BIS: Monetary and Financial Stability: Basel III http://www.bis.org/bcbs/basel3.htm

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