(MENAFN) Chairman of the Basel Committee on Banking Supervision, Mervyn King, stated that the oversight body altered the Liquidity Coverage Ratio (LCR), reported Xinhua News.
King, who is also the Governor of the Bank of England, said that the LCR, which is a major component of the Basel III framework, was introduced 2 years ago to aid banks to endure hard times.
The amendments carried on the ratio comprise an extension in the range of assets eligible as high quality liquid assets and some improvements to the assumed inflow and outflow rates to reflect actual experience in times of stress.
He added that as planned, the LCR will be introduced on 1 January 2015, however, the minimum requirement will start at 60 percent, growing in equal annual steps of 10 percentage points to reach 100 percent on 1 January 2019.
The amendments will guarantee that the new liquidity standard will not hold back the ability of the global banking system to fund a recovery.
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