The Basel Committee on Banking Supervision, a key group of banking regulators, has bolstered its guidelines for sound liquidity risk management and strengthened the position of supervisors, three months after watchdogs were described as "negligent" in a report commissioned by the European Parliament.

The enhanced guidelines, issued in a consultative document entitled "Principles for Sound Liquidity Risk Management and Supervision" follow recommendations made to the G7 finance ministers and central bank governors in April 2008 by the Financial Stability Forum, which brings national authorities together with international regulatory agencies to promote financial stability.