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Group of Governors and Heads of Supervision endorses revised liquidity standard for banks

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posted on Jan, 6 2013 @ 03:06 PM
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The Group of Governors and Heads of Supervision (GHOS), the oversight body of the Basel Committee on Banking Supervision, met today to consider the Basel Committee's amendments to the Liquidity Coverage Ratio (LCR) as a minimum standard. It unanimously endorsed them. Today's agreement is a clear commitment to ensure that banks hold sufficient liquid assets to prevent central banks becoming the "lender of first resort".


Nothing changes. Banks get more power.

The international financial regulators, united in the Basel Committee, decided to postpone the regulations relating to cash that banks must have available as collateral.
Banks "warned" that the proposed regulations could be an obstacle for the economic recovery.

Source

The liquidity coverage ratio of Banks now includes more types of assets, including certain equity and mortgage products, These new liquidity rules should prevent bank runs, where people decide to massively withdraw all their savings.

The banks have four more years to comply with the regulations. "This was a compromise between the different visions of the world," said Mervyn King, chairman of the Bank of England. ECB President Mario Draghi was also in favor of postponing the regulations.




posted on Jan, 6 2013 @ 03:12 PM
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Banks are like casinos. They never lose.



posted on Jan, 6 2013 @ 04:19 PM
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Banks are far worse than Casinos. Casinos are required to have the cash in vaults for payout to cover the chips in play on their gaming floor at any given time.

Banks just play games with digital numbers and fantasy totals. Estimates for the derivative markets alone estimate as high as 800 ahem..TRILLION...in values running between and among the banks. Err... Reserve? I'll be happy if they could just cover a real high demand day coming at once, nationally. I think even that would bust most that day.

...and the laughs keep on coming down the Rabbit-hole, eh? Tea anyone?



posted on Jan, 6 2013 @ 04:35 PM
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I just saw something on this on BBC

So what are the new rules? Here in Canada I thought there is no requirement and I thought USA was 10%, but I could be wrong. There was no mention of any specifics which I think makes the report pretty vague. The reporter was also saying how this will help ensure banks don't go under when they can't access funding from other banks, and that this was the reason for recessions and the like.

No mention of central banks and WHY these banks are unable to access funds in the first place, or what fractional reserve banking even is which is what this law is really talking about. I think the public needs to be more aware of these things (fractional reserve banking, compounding interest and central banking controlling money).





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