Home      Login


Application of Recent Liquidity Regulations to Banking Organizations and Key Impacts When Implementing Them  


Author:  Lee A. Schneider.; Chen Xu.; Gregory J. Lyons.


Source: Volume 28, Number 05, May/June 2015 , pp.5-16(12)




Journal of Taxation and Regulation of Financial Institutions

next article > |return to table of contents

Abstract: 

The Basel Committee on Banking Supervision has introduced liquidity and funding requirements to work in conjunction with capital, leverage, and large exposure rules. This array of technical regulations seeks to strengthen the financial viability of large, integrated banking organizations in an effort to avert the potentially dire consequences of systemic financial stress. These requirements apply at the holding company level and filter through the entire organization, impacting the broker-dealer businesses as well, causing tensions with other regulatory schemes. As banking organizations integrate these new mandates into their businesses, they rely heavily on technology and systems. Tackling these challenges may drive new innovations in financial products and in the regulation of the industry.

Keywords: liquidity coverage ratio; net stable funding ratio; high-quality liquid assets; broker-dealers

Affiliations:  1: Debevoise & Plimpton LLP; 2: Debevoise & Plimpton LLP; 3: Debevoise & Plimpton LLP.

Subscribers click here to open full text in PDF.
Non-subscribers click here to purchase this article. $23

next article > |return to table of contents