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2018 | OriginalPaper | Chapter

6. The New International Liquidity Regulatory Framework for Banks

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Abstract

The author investigates the new international bank liquidity regulatory framework introduced after the GFC. Illustrating the new liquidity rules applicable to banks, the chapter reviews the common principles for sound liquidity management and supervision (so-called Sound Principles) as defined by the Basel Committee in September 2008 and, then, describes the two minimum liquidity standards for banks introduced by Basel III of 2010 (the Liquidity Coverage Ratio—LCR, and the Net Stable Funding Ratio—NSFR). Chiaramonte provides an overview of Basel III liquidity requirements and the monitoring tools designed to strengthen and further promote global consistency in the supervision of liquidity risk.

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Literature
go back to reference Basel Committee on Banking Supervision (BCBS). (2000, February). Sound Practices for Managing Liquidity in Banking Organizations. Basel: Bank for International Settlements (BIS). Basel Committee on Banking Supervision (BCBS). (2000, February). Sound Practices for Managing Liquidity in Banking Organizations. Basel: Bank for International Settlements (BIS).
go back to reference Basel Committee on Banking Supervision (BCBS). (2008a, February). Liquidity Risk: Management and Supervisory Challenges. Basel: Bank for International Settlements (BIS). Basel Committee on Banking Supervision (BCBS). (2008a, February). Liquidity Risk: Management and Supervisory Challenges. Basel: Bank for International Settlements (BIS).
go back to reference Basel Committee on Banking Supervision (BCBS). (2008b, September). Principles for Sound Liquidity Risk Management. Basel: Bank for International Settlements (BIS). Basel Committee on Banking Supervision (BCBS). (2008b, September). Principles for Sound Liquidity Risk Management. Basel: Bank for International Settlements (BIS).
go back to reference Basel Committee on Banking Supervision (BCBS). (2010a, December). Basel III: A Global Regulatory Framework for More Resilient Banks and Banking Systems. Basel: Bank for International Settlements (BIS). Basel Committee on Banking Supervision (BCBS). (2010a, December). Basel III: A Global Regulatory Framework for More Resilient Banks and Banking Systems. Basel: Bank for International Settlements (BIS).
go back to reference Basel Committee on Banking Supervision (BCBS). (2010b, December). Basel III: International Framework for Liquidity Risk Measurement, Standards and Monitoring. Basel: Bank for International Settlements (BIS). Basel Committee on Banking Supervision (BCBS). (2010b, December). Basel III: International Framework for Liquidity Risk Measurement, Standards and Monitoring. Basel: Bank for International Settlements (BIS).
go back to reference Basel Committee on Banking Supervision (BCBS). (2013a, January). Basel III: The Liquidity Coverage Ratio and Liquidity Risk Monitoring Tools. Basel: Bank for International Settlements (BIS). Basel Committee on Banking Supervision (BCBS). (2013a, January). Basel III: The Liquidity Coverage Ratio and Liquidity Risk Monitoring Tools. Basel: Bank for International Settlements (BIS).
go back to reference Basel Committee on Banking Supervision (BCBS). (2013b, April). Monitoring Tools for Intraday Liquidity Management. Basel: Bank for International Settlements (BIS). Basel Committee on Banking Supervision (BCBS). (2013b, April). Monitoring Tools for Intraday Liquidity Management. Basel: Bank for International Settlements (BIS).
go back to reference Basel Committee on Banking Supervision (BCBS). (2014a, January). Basel III: The Net Stable Funding Ratio—Consultative Document. Basel: Bank for International Settlements (BIS). Basel Committee on Banking Supervision (BCBS). (2014a, January). Basel III: The Net Stable Funding Ratio—Consultative Document. Basel: Bank for International Settlements (BIS).
go back to reference Basel Committee on Banking Supervision (BCBS). (2014b, October). Basel III: The Net Stable Funding Ratio. Basel: Bank for International Settlements (BIS). Basel Committee on Banking Supervision (BCBS). (2014b, October). Basel III: The Net Stable Funding Ratio. Basel: Bank for International Settlements (BIS).
Metadata
Title
The New International Liquidity Regulatory Framework for Banks
Author
Laura Chiaramonte
Copyright Year
2018
DOI
https://doi.org/10.1007/978-3-319-94400-5_6