Basel liquidity rule may be watered down amid crisis concerns

End-of-the-year deadline looms

On ‘Brink’

“At a minimum, they will need to monitor developments that materially affect the LCR of the banking system,” the BIS said.

The Basel committee brings together regulators from 27 nations including the U.S., U.K., Japan, and China to co- ordinate theirregulation and supervision of banks.

Global central bank and regulatory chiefs will review the Basel group’s work on the LCR at a meeting in January.

Failure to reach a consensus on the measure would add to uncertainty surrounding the implementation of Basel III. U.S. and EU regulators have already declared they will fail to meet the international Jan. 1, 2013 deadline to begin phasing in the measures.

“Basel is, in my view, on the brink,” said Petrou.

Bloomberg News

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