Big banks won't drown in liquidity rule

After a long incubation period, a new liquidity standard for large US banks has finally hatched

Thursday 4 September 2014 at 16:14

After a long incubation period, a new liquidity standard for large US banks has finally hatched.

The novelty of the so-called liquidity-coverage-ratio rule approved by bank regulators Wednesday means that there inevitably will be unintended costs as banks adjust their holdings to meet the new rule. The worst fears, however, appear to be overstated.