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Softening of Basel liquidity rules not such a big deal – Capital Economics

By FXstreet.com January 07, 2013, 11:36:00 AM EDT

FXstreet.com (Barcelona) - The Capital Economics team in London have issues a brief note commenting that the expansion in the range of assets that can be used to meet the new liquidity requirements under Basel III, combined with their slower implementation is a small positive for the banking sector, but should not have any major economic or market impact.

They writes, "The changes will at least make it easier for some banks to satisfy the requirements when the ample liquidity provided by "quantitative easing" is eventually withdrawn. However, there may be some disappointment (and bemusement) that gold has still not been included in the definition of a high-quality liquid asset."




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.


This article appears in: Investing, Forex and Currencies

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