Softening LCR to keep credit flowing

Stephen Kinsella, lecturer in economics, University of Limerick

On 6 January 2013, the Basel Committee on Banking Supervision (Basel Committee) finalised new, less onerous liquidity rules for global banks and large investment firms[1]. In unanimously endorsing minimum standards on the Liquidity Coverage Ratio (LCR), the Basel Committee[2] took an important step forward in finalising the Basel III framework.