Equities may count as liquid assets

The Basel Committee on Banking Supervision "may let banks use equities and more corporate debt, in addition to cash and sovereign bonds, to satisfy new short-term liquidity standards," Bloomberg reports.

Banking regulators worldwide are working towards new standards on liquidity that will apply from 2015.

The "liquidity coverage ratio" will, from 2015, oblige banks to hold sufficient liquid assets to cover a temporary loss of access to funding that falls short of a full-scale run.

Bloomberg reports that under one option being considered the banks could increase the proportion of this buffer, which can be made up of high-grade corporate and covered bonds. Regulators could also decide to allow banks to use equities to meet the liquidity requirement.