Financial Times FT.com

Banking regulators to tackle liquidity risks

By Gillian Tett in New York

Published: June 19 2008 01:45 | Last updated: June 19 2008 01:45

Global banks are to hold a potentially crucial meeting next month with US, European and Asian regulators in Basel to discuss the best way for financial institutions to manage their liquidity risks in the aftermath of the credit turmoil.

Regulators plan to press the banks to adopt tough new guidelines on how to handle their businesses so that they can weather liquidity shocks. It will include a demand that banks ensure they always have a large buffer of liquid assets on their books.

You have viewed your allowance of free articles. If you wish to view more, click the button below.

Read this