Finally having gotten the message, regulators are expected to lighten up on the banks with the...

|By:, SA News Editor

Finally having gotten the message, regulators are expected to lighten up on the banks with the release Sunday of Basel's new liquidity coverage ratio. Working pro-cyclically, regulators for years have been forcing banks to raise liquidity and capital just at the time when they should be encouraged to shovel funds out the door. The coming rule is expected to give lenders extra years to meet the new standard.