European bank shares have risen following the weekend agreement on the minimum amounts of cash and easy-to-sell assets that banks have to hold.
A previous draft two years ago said they would have to meet new requirements by 2015, but that has now been extended to 2019.
The reserves are supposed to make banks less vulnerable to lots of customers trying to withdraw their money.
It is the first time there have been liquidity rules covering global banks.
The agreement was made by the group of banking regulators that oversees the Basel Committee on Banking Supervision.
End QuoteThis is the worst possible time to judge whether the liquidity reform will be useful"
The same group is also trying to set minimum capital requirements, which would make banks more able to absorb losses.
Analysts say the rules just announced are more flexible than a draft version, and shares in banks rose on Monday morning.
Barclays shares rose 3.4% in early trading in London, while Lloyds Banking Group was up 1.2%. In Frankfurt, Deutsche Bank was up 3.2% while Commerzbank rose 2.2%.
Odd selection?Under the new rules, banks will have to hold enough cash and easy-to-sell assets to tide them over during a 30-day crisis.
Continue reading the main storyAAA-rating
The best credit rating that can be given to a borrower's debts, indicating that the risk of borrowing defaulting is minuscule.
Regulators hope that extra liquidity would allow banks to survive a run on them, as happened with Northern Rock in 2007.
One big change has been which assets count as easy to sell.
Some company shares, corporate bonds and residential mortgages have been added to the list, which previously only included assets such as government bonds.
"The inclusion of mortgage-backed securities will be seen by some as odd, since these proved to be wholly illiquid and unsellable in the summer of 2007," said BBC business editor Robert Peston.
The new liquidity coverage ratio will be phased in from 2015 and take full effect four years later.
Banks had warned that over-stringent standards could reduce lending and stifle economic growth.
Bank of England governor Sir Mervyn King, who also chairs the group of regulators from 27 countries that agreed the deal, said that the phased introduction would mean the new standards would not "hinder the ability of the global banking system to finance a recovery".
Anda sedang membaca artikel tentang
Global deal boosts bank shares
Dengan url
https://gemukesehatan.blogspot.com/2013/01/global-deal-boosts-bank-shares.html
Anda boleh menyebar luaskannya atau mengcopy paste-nya
Global deal boosts bank shares
namun jangan lupa untuk meletakkan link
Global deal boosts bank shares
sebagai sumbernya
0 komentar:
Posting Komentar