Tough new liquidity standards announced on Monday by the UK’s FSA watchdog could force UK banks and investment firms from next year to increase their holdings of cash and government bonds by £110bn and cut their reliance on short-term funding by 20% in the first year alone. In subsequent years, banks might have to increase their holdings of easily saleable assets by a total of £370bn or sharply cut their reliance on short-term funding.

This entry was posted by Gwen Robinson on Tuesday, October 6th, 2009 at 4:53 and is filed under Capital markets. Tagged with fsa. Edit this entry.