We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
Debate House Prices
In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non MoneySaving matters are no longer permitted. This includes wider debates about general house prices, the economy and politics. As a result, we have taken the decision to keep this board permanently closed, but it remains viewable for users who may find some useful information in it. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Official: BASEL 3 liquidity rules eased
HAMISH_MCTAVISH
Posts: 28,592 Forumite
http://www.bbc.co.uk/news/business-20928354Internationals financial regulators have eased rules on minimum quantities of cash and liquid assets all banks must hold, set to take effect in 2015.
Analysts say the rules just announced are more flexible than a draft version.
The new version allows banks to hold a broader range of eligible assets, including some shares, corporate bonds, and high-quality residential mortgage backed securities.
Analysts had warned that over-stringent standards could reduce lending and stifle economic growth.
The new version allows banks to hold a broader range of eligible assets, including some shares, corporate bonds, and high-quality residential mortgage backed securities.
It also gives them more time to comply with the new standards.
The head of oversight body's head, Mervyn King, said the timeframe ensures the rules "will in no way hinder the ability of the global banking system to finance the recovery".
A number of posters claimed that complying with the new rules would effectively prevent lending from growing for the foreseeable future.
That no longer appears to be the case.
(And congrats to Generali for predicting this some time ago.)
More interestingly, Residential Mortgage Backed Securities have returned to the list of acceptable assets to hold as part of the liquidity buffer.
And that will likely be something of a game changer.;)
“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”
0
Comments
-
Banks won't be best pleased. One of their best excuses for not lending has been taken away - they'll think of something else I'm sure.0
-
Banks won't be best pleased. One of their best excuses for not lending has been taken away - they'll think of something else I'm sure.
Depends what is allowed under the definition high-quality residential mortgage backed securities to.
Await BASEL IV."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
Apparently all UK banks now exceed the requirements under the new rules, a full 7 years before they need to be implemented.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
quick - buy a house!FACT.0
-
Will it actually change anything considering this wasn't implemented, and no doubt the above will never bve implemented either?
When I say change anything, I mean will banks suddenly lend more because legislation that wasn't even implemented has got looser?
Seems to me, at the moment, the less they lend at their own risk, the more rewards they get in terms of government support?0 -
Banks won't be best pleased. One of their best excuses for not lending has been taken away - they'll think of something else I'm sure.
The relaxation makes little difference to UK banks. As majority are well above the requirements to comply with the 2015 level.
Basle 3 is a global regulation. So problems lie elsewhere. Spain being an obvious contender at the moment.0 -
grizzly1911 wrote: »Depends what is allowed under the definition high-quality residential mortgage backed securities .
Well with the possible exception of the relatively tiny NRAM holdings, almost all UK RMBS should fall under that criteria.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
HAMISH_MCTAVISH wrote: »http://www.bbc.co.uk/news/business-20928354
A number of posters claimed that complying with the new rules would effectively prevent lending from growing for the foreseeable future.
That no longer appears to be the case.
(And congrats to Generali for predicting this some time ago.)
More interestingly, Residential Mortgage Backed Securities have returned to the list of acceptable assets to hold as part of the liquidity buffer.
And that will likely be something of a game changer.;)
We go back to a position where banks can lend money to people to buy houses again. I'll try to have a look at the new agreement at some point to see what it means for high LTV lending as that's one of the important bits.
This is good news and was inevitable really. The old version of the agreement was crazy and really only addressed the issues of the last bust. In some ways that is inevitable, in the words of the cliche the Central Banks are old Generals fighting the last war.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 353.7K Banking & Borrowing
- 254.2K Reduce Debt & Boost Income
- 455.1K Spending & Discounts
- 246.8K Work, Benefits & Business
- 603.3K Mortgages, Homes & Bills
- 178.2K Life & Family
- 260.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards