• Switzerland's news in English
 

Swiss-based bank group eases crisis rules

AFP · 6 Jan 2013, 22:59

Published: 06 Jan 2013 22:59 GMT+01:00

The Basel Committee on Banking Supervision said at a press conference in the Swiss city on Sunday  that it had widened the definition of the easy-to-sell assets that banks will have to hold to survive periods of stress.
   
The Basel III standards had been initially proposed in 2010 but banks and financial institutions have since lobbied intensively to make the rules more flexible and result in lower costs for the sector.

The details of the Liquidity Coverage Ratio (LCR), which was drafted to avoid a repeat of the 2008 banking crisis and unanimously endorsed on Sunday by the Basel group's top oversight body, give the banks a reprieve.

Its provisions include a much broader definition of the minimum assets every bank needs to hold, making it less costly for them to maintain the required buffer.

"The changes to the definition of the LCR, developed and agreed by the Basel Committee over the past two years, include an expansion in the range of assets eligible as HQLA (high quality liquid assets)," the committee said.

The new LCR's full details will also be fully implemented only in 2019, instead of 2015 as initially proposed.

"Specifically, the LCR will be introduced as planned on 1 January 2015, but the minimum requirement will begin at 60%, rising in equal annual steps of 10 percentage points to reach 100% on 1 January 2019," the Basel group announced.

Mervyn King, chairman of the Basel group's top oversight body and governor of the Bank of England, described the agreement announced Sunday as "a very significant achievement."

"For the first time in regulatory history, we have a truly global minimum standard for bank liquidity," King said.

"It was well worth spending the time to make it right because this is an agreement which is going to affect banks for a number of years," he said, adding that the agreement had been reached unanimously.

The Basel Committee, organized by the Basel-based Bank of International Settlements, brings together representative regulators from 27 nations.

"Importantly, introducing a phased timetable for the introduction of the LCR, and reaffirming that a bank's stock of liquid assets are usable in times of stress, will ensure that the new liquidity standard will in no way hinder the ability of the global banking system to finance a recovery," King said.

Stefan Ingves, chairman of the Basel Committee and of Sweden's Sveriges Riksbank, said the global regulator could now focus on the Net Stable Funding Ration, another pillar of the Basel III reforms.

"The completion of this work will allow the Basel Committee to turn its attention to refining the other component of the new global liquidity standards, the Net Stable Funding Ratio, which remains subject to an observation period ahead of its implementation in 2018," he said.

Your comments about this article

Today's headlines
Fifa reform body holds first meeting in Bern
Photo: AFP

Fifa reform body holds first meeting in Bern

8 hours ago

A 12-member committee set up by Fifa to draw up far-reaching reforms to the Zurich-based world governing body for football in the wake of a corruption scandal met for the first time in Bern on Wednesday.

MP's Facebook profile closed after complaints
MP Christoph Mörgeli: pondering legal action. Photo: Federal Assembly

MP's Facebook profile closed after complaints

12 hours ago

The personal Facebook account of right-wing Swiss politician Christoph Mörgeli has been closed following complaints over controversial comments he posted, including one deriding migrants, according to a media report.

Saint-Gobain clears hurdle in Sika takeover
Photo: AFP

Saint-Gobain clears hurdle in Sika takeover

14 hours ago

French building materials giant Saint-Gobain cleared a key hurdle in its bid for Swiss adhesives maker Sika, under a court ruling on Tuesday.

Rail operator launches online shopping service
SBB explains its new SpeedyShop service (in German) on its website. Photo: Speedyshop.ch/Screenshot

Rail operator launches online shopping service

14 hours ago

Shopping for supermarket items by smartphone and picking them up at the train station half an hour later is now possible under a pilot project introduced on Tuesday in the Zurich region.

US Open tennis
Federer advances after effortless win over Mayer
Federer: off to a fast start. Photo: Getty Images/AFP

Federer advances after effortless win over Mayer

1 day ago

Swiss tennis ace Roger Federer advanced to the second round of the US Open on Tuesday by defeating Argentina's Leonardo Mayer 6-1, 6-2, 6-2 in sweltering conditions at Arthur Ashe Stadium.

Zurich's Dolder Grand named best Swiss hotel
The Dolder Grand hotel. Photo: Switzerland Tourism

Zurich's Dolder Grand named best Swiss hotel

1 day ago

It was good enough for Justin Bieber when he visited Switzerland a couple of years ago and now Gault&Millau is giving Zurich’s Dolder Grand Hotel the thumbs up.

Get wise to Swiss duties on stuff bought abroad
Photo: Federal Customs Administration

Get wise to Swiss duties on stuff bought abroad

1 day ago

Swiss import duties designed to protect the domestic economy can be a killjoy for ‘shopping tourists’ in Switzerland seeking bargains across the border or online. But Emily Rose Mawson discovers there are ways to avoid paying through the nose for those purchases from abroad.

Mediterranean migrant count continues to rise

1 day ago

More than 350,000 migrants have risked their lives crossing the Mediterranean this year, and some 2,600 have died while making the perilous journey to Europe, the Geneva-based International Organization for Migration said on Tuesday.

Anger over autistic kid kicked off Swiss plane
Photo: AFP

Anger over autistic kid kicked off Swiss plane

1 day ago

Swiss International Air Lines is facing embarrassment after it kicked an Israeli family off a flight to Geneva from Zurich because their eight-year-old autistic boy was crying uncontrollably.

US Open tennis
Federer starts bid for sixth US Open title
Photo: AFP

Federer starts bid for sixth US Open title

1 day ago

Switzerland's Roger Federer gets his bid to become the oldest US Open winner in 45 years underway on Tuesday but the five-time champion will be overshadowed by Andy Murray's clash with enfant terrible Nick Kyrgios.

RECEIVE OUR NEWSLETTER AND ALERTS

Features
Getting the lowdown on Swiss import duties for stuff bought abroad
National
One million people throng Zurich techno street party
National
Where are Switzerland's priciest babysitters?
Features
Farmers’ wives offer visitors genuine slice of life in rural Switzerland
National
Switzerland set to test world's longest train tunnel under the Alps
National
US right-wing think tank: Swiss are freest people in Europe
National
Bottoms up: new signs alert visitors to Zurich's nudist bathing zones
Sport
Swiss man smashes cliff jumping record with 59-metre dive
National
Climate change seen as plus for Switzerland's wine growers
Photo: Federal Housing Office
National
Buying home in Switzerland is 'cheaper than renting'
National
Central bank to launch new high-tech banknotes — six years late
National
Swiss speed climber summits all 4,000m peaks in the Alps
National
Report: Switzerland is world's safest country (barring extreme sports)
National
Where are the top ten spots to visit in Switzerland for tourists?
National
Two Japanese climbers found dead after scaling Matterhorn's summit
National
High Geneva accommodation costs force unpaid UN intern to live in tent
National
Zurich farmer ordered to remove cow bells after noise complaints
National
Gays file criminal complaint against Swiss bishop over speech
National
The Expat Guide: Moving to Switzerland
National
Briton who ends life in Switzerland: 'Ideal shelf life for people is 70'
National
Aargau farmer under fire after pigs gassed to death by own excrement
National
Cows trample German woman to death in Graubünden Alps
National
Hot times: Swiss city to host first naked performance festival
Features
Expat American author's time in Zurich inspires racy bestseller
National
10 amazing places to be on Swiss National Day — or any other day
National
Swiss army pilfers water from French lake for cows in Switzerland
National
Swiss Army airlifts water to thirsty cows facing drought conditions
International
Canary Islands: diver killed in collision with Swiss windsurfer
National
VIDEO: Seagull steals camera for amazing bird's eye selfie
Switzerland celebrates first ascent of Matterhorn
Politics
Immigrant recruits may not be loyal: Swiss defence minister
Solar Impulse 2 round-the-world flight halted for repairs
Society
Teenager gets high on vegetarian meal at Zurich club
National
Greece seeks tax revenues from assets 'hidden' in Swiss banks
Culture
Paris police arrest Swiss artist for naked Eiffel Tower selfies
National
Scientists uncover largest Swiss dinosaur skeleton ever found
National
National weather office extends danger alerts as heatwave takes hold
National
Most severe heatwave in Switzerland since 2003 on the way
Travel
Bogglingly expensive Geneva club sandwiches remain 'priciest in world'
Politics
Anti-immigration nationalist party remains most popular: poll
National
Greek finance minister slams Swiss over lack of tax evasion info
Business & Money
Insects proposed for sale in Swiss supermarkets next year
Latest news from The Local in Austria

More news from Austria at thelocal.at

Latest news from The Local in Germany

More news from Germany at thelocal.de

Latest news from The Local in Denmark

More news from Denmark at thelocal.dk

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

Latest news from The Local in Sweden

More news from Sweden at thelocal.se

4,481
jobs available