US financial regulators are working on new rules aimed at preventing banks from growing overly dependent on short-term borrowings. The proposed rules would require banks to operate under new measures – or ratios – gauging their dependence on short-term funding and their susceptibility to market shocks. The move reflects growing recognition that banks became too dependent on cheap overnight borrowings in the run-up to the financial crisis.

This entry was posted by Gwen Robinson on Monday, September 28th, 2009 at 4:51 and is filed under Capital markets. Edit this entry.