Financial Times FT.com

Watchdog promises action on liquidity

By Peter Thal Larsen and Jennifer Hughes

Published: June 10 2008 22:30 | Last updated: June 10 2008 22:30

The Financial Services Authority will press ahead with plans to overhaul the regulation of banks’ liquidity requirements even if international efforts to co-ordinate a response to the credit crisis are delayed, the watchdog’s chairman warned on Tuesday.

Sir Callum McCarthy told the annual conference of the British Bankers’ Association that tougher liquidity rules, which could have helped prevent the collapse of Northern Rock, were too important to be delayed.

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