Basel liquidity ratios ‘destructive’ US Senate told
Fed's analysis of NSFR costs "dubious at best", says AEI scholar Paul Kupiec
A panel of respected academics savaged Basel III's two new liquidity ratios at a US Senate Banking Committee hearing on bank capital and liquidity regulation earlier today (June 7).
The liquidity coverage ratio (LCR) is "about as destructive a regulation as you can imagine", while the cost/benefit analysis behind US federal regulators' net stable funding ratio (NSFR) proposal is "dubious at best", the Senate heard.
"The LCR is ill-conceived and it's not necessary," said Marvin Goodfriend
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