Newsletter October 08: An international liquidity risk framework is born

BASEL – International efforts to put in place a more robust liquidity risk management framework for banks took a big stride forward in September. First, EU supervisors issued their advice* to the European Commission on how banks and investment firms in the 27-country bloc should manage their liquidity. Then, the Basel Committee, which effectively sets prudential standards for banks around the world, issued its up-graded principles** for the management and supervision of liquidity risk.