Basel committee agrees on liquidity guidelines

Private securities, such as highly-rated corporate bonds and covered bonds, can qualify as up to 40% of the liquidity reserve that banks will be required to hold under new rules

The Basel Committee on Banking Supervision has agreed in principle to allow banks to use non-government bonds and securities to help them satisfy stricter liquidity requirements aimed at preventing another financial crisis.

The agreement was announced on Friday by Deutsche Bundesbank Vice President Franz-Christoph Zeitler after the committee consulted with finance ministers of the Group of 20 industrialised and developing nations, who were meeting in Seoul on Friday.

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