Saturday, July 26th, 2014
The Basel committee has re adjusted the leverage ratio requirement after analysing the bank data. The group also modified a liquidity rule to make it easier to count a certain type of central bank loan against regulatory standards. Changes to the leverage rule give lenders more scope to use an accounting practice known as netting to calculate the ratio, and ease proposals on how lenders determine the size of their off-balance sheet activities. According to the Basel committee other amendments avert the risk that banks end up double-counting some derivatives trades.