The Basel Committee on Banking Supervision's decision to give global banks an additional four years to meet liquidity requirements was aimed at ensuring that the change wouldn't discourage lending to the real economy. Some banks have already benefited from the revised liquidity coverage ratio, with their share prices increasing. GFMA welcomed the Basel panel's decision to allow mortgage-backed securities and equities to be included in banks' liquidity buffers. However, the move could prove costly for financial institutions, analysts say. Read GFMA's comments on the change.
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