Basel committee eases deadlines on bank liquidity rules

The Basel Committee of global banking supervisors said both of its new liquidity standards will have soft phase-ins instead of fixed, mandatory deadlines.

The new rules have faced fierce opposition from banks, which say they would struggle to comply and will welcome the committee's easier stance towards their implementation.

The committee had already agreed to a soft phase-in for its net stable funding ratio, which covers a bank's longer-term liquidity.

On Tuesday it extended such a phase in to its liquidity coverage ratio as well, which refers to a lender's short-term liquidity situation and will require a bank to hold enough highly liquid assets to cover 30 days of net cash outflows.

"The Committee agreed on key details of the liquidity coverage ratio," the committee said following a meeting in South Korea.

"It confirmed that both the LCR and the net stable funding ratio will be subject to an observation period and will include a review clause to address any unintended consequences," the Committee said.