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Basel regulators to give banks more time to build up cash buffers -source

Jan 04 2013 Huw Jones, Reuters

Banks will get more time to build up cash buffers to protect against market shocks under a rule change that could help free up credit for struggling economies, a European regulatory source said. The Basel Committee, made up of banking supervisors from nearly 30 countries, is expected to announce the revision on Sunday to its "liquidity coverage" ratio or LCR, part of efforts to make banks less likely to need taxpayer help again in a crisis. The change comes after heavy pressure from banks and some regulators, who feared Basel's original version would suck up too much liquidity at a time when ailing economies are badly in need of a ready supply of credit to finance growth. Banks were required to comply with the LCR by 2015, but will now get more time, the source said. The Basel Committee had no immediate comment. The LCR requires banks to hold enough liquid assets like easily sellable government and corporate bonds to cover net ouflows for up to a month. Under the Basel III regime, the

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