PRA crackdown on liquidity-poor banks
The Prudential Regulation Authority (PRA) has found five UK banks have a shortfall of an aggregate £27.1bn, meaning they are below the minimum 7% liquidity required by Basel III legislation.
The Prudential Regulation Authority (PRA) has found five UK banks have a shortfall of an aggregate £27.1bn, meaning they are below the minimum 7% liquidity required by Basel III legislation.
The restructuring of the amount of capital and liquid assets banks have to hold before central bank support is pulled has been pushed out to 2019 rather than 2015. But far from being an unnecessary delay it is a sensible step on the way to boosting investment-led economic growth.
The Basel III banking regulations have been eased to give global banks more time to comply with their liquidity requirements.
Rather than another outlook piece on investment trends for 2013, here are four things to consider as we approach 2013 that will impact on portfolio strategies but that are not strategies themselves.
New capital adequacy requirements under Basel III do not mean the end of all Basel II’s problems.