Regulators relax key bank rule
January 7 , 2013
International financial regulators have relaxed rules on minimum quantities of cash and liquid assets all banks must hold.
The agreement, which was announced on Monday by the body that oversees the Basel Committee on Banking Supervision, comes in a bid to make banks less vulnerable to runs.
The new "liquidity coverage ratio" is set to come into place from 2015 and take full effect four years later.
According to analysts, the rules are more flexible than a draft version.
The new rules come as part of efforts to ensure banks survive financial shocks such as those seen after the 2008 collapse of Lehman Brothers in the United States.
Banks will now have to hold enough cash and easily sellable assets to tide them over during a 30-day crisis.