Global Bank Regulators Call For Stress Tests Of Daily Liquidity

Law360, New York (July 2, 2012, 2:35 PM EDT) -- A panel of global regulators said Monday that banks should undergo regular tests of their ability to meet daily payment obligations to financial counterparties if they, or the broader financial system, are caught in a sudden crisis.

The Basel Committee on Banking Supervision put out a proposal that would require internationally active banks and their national regulators to develop improved metrics for monitoring banks' intraday liquidity management, a key measure of health for the financial system.

The financial crisis from 2007 to 2009 showed that regulators...
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