FSA postpones its liquidity hike
Share
The Financial Services Authority is to delay the introduction of stricter liquidity requirements for lenders until the economy has recovered, it revealed last week.
The regulator published its en-hanced liquidity regime in October 2009, introducing tougher qualitative and quantitative standards for firms.
But at that stage the FSA said it would not tighten quantitative standards before a recovery was assured, and would give a further update in Q1 2010.
The regulator now says it believes it would be premature to increase liquidity requirements at the moment.
It says it will review the situation again later this year, with a further announcement due in Q4.
