Financial Services Financial Services

Comment: EU bank liquidity rules show perils of rigid regulation

By Jack Schickler
  • 19 Mar 2021 03:31
  • 19 Mar 2021 03:31
Regulations famously create unintended consequences, meaning policymakers sometimes get the opposite of what they hoped for.
That’s a longstanding mantra of a weary financial industry players fighting rigid or ill-thought-through new norms. EU rules on a liquidity coverage ratio, requiring banks to hold a stock of cash-like assets in case of

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