The U.K.'s Financial Services Authority has scrapped plans to impose its own liquidity rules for U.K. banks, saying the institutions should instead meet any new international requirements by 2015.
"The Basel Committee has moved further towards introducing minimum global liquidity requirements that would be implemented through EU law," the agency said on its Web site.
"Given this development, the FSA does not believe it is appropriate to set industry-wide transition requirements for the U.K.'s larger banks at this stage, although they should expect to at least meet any new international standards by the currently proposed implementation date of Jan. 1 2015," it added.
In October 2009, the FSA proposed tougher liquidity rules to improve the way banks, building societies and some asset managers calculate, monitor, stress-test and report on their own funding needs. It also proposed to increase the outright value of the safe-haven assets, such as cash and government bonds, banks would have to hold.
