Top Regulators Give Banks a Bit of Breathing Room
Source: NYT
Banks around the world will have more leeway in meeting new rules designed to prevent future financial crises, after a decision Sunday by a group of top central bankers and regulators who said they wanted to avoid restrictions that might damage the economic recovery.
Meeting in Basel, Switzerland, a committee that included Ben S. Bernanke, the chairman of the U.S. Federal Reserve, and Mario Draghi, the president of the European Central Bank, extended the transition period for the new rules, which are meant to make sure banks have enough liquid assets on hand to survive the kind of market chaos that followed the collapse of Lehman Brothers in 2008.
Besides extending the timetable, the panel — which also includes top bank regulators from 26 large countries — loosened the definition of what constitutes liquid assets. The decision takes some pressure off banks, which have complained that new guidelines will throttle lending and hurt economic growth.
Mervyn A. King, governor of the Bank of England and chairman of the group, said there was no intent to go easier on lenders. “Nobody set out to make it stronger or weaker,” he said of the rules during a conference call with reporter, “but to make it more realistic.”
Read more: http://www.nytimes.com/2013/01/07/business/global/07iht-banks07.html?pagewanted=all
= new reply since forum marked as read
I hear the chocolate ration will be increased!
