Newsletter July/August 2012: Swedish banks to adopt Basel liquidity rules early

STOCKHOLM – Sweden’s Financial Supervisory Authority (Finansinspektionen) is proposing that the country’s largest banks should adopt the new, Basel III short-term liquidity ratio two years ahead of the internationally-agreed timetable. One key element of the Basel III framework hammered out in 2010 requires banks to hold sufficient highly liquid assets to survive a 30-day period of market stress. This requirement known as the liquidity coverage ratio (LCR) is due to take effect around the world in 2015.