UK Won't Tighten Liquidity Rules on Banks

Date: 08.03.2010

Source: Reuters website

Banks operating in Britain were given more breathing space on Monday when their regulator, the Financial Services Authority, said it won't demand higher liquidity levels for now.

The FSA angered local banks last year by pushing ahead with a new liquidity regime requiring then to hold buffers of cash or highly-liquid assets like government bonds to rise market shocks for a week or more without having to raise fresh capital.
 

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