Basel Committee issues liquidity guidelines

The Basel Committee on Banking Supervision, an influential group of global regulators, has issued its draft proposals to improve liquidity risk management and supervision.

The proposals seek to raise banks' resilience to liquidity stress after the global credit crunch underlined the extent to which illiquidity could hinder the workings of the global financial system.

"The principles are based on the fundamental premise that a bank's liquidity risk framework should ensure it maintains sufficien