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Basel Said to Agree on Draft Changes to Bank Liquidity Rule

Global banking regulators have tentatively agreed to change the way they calculate whether banks are holding enough liquid assets following concerns the planned rules were too severe, according to two people with knowledge of the matter.

The Basel Committee on Banking Supervision discussed the standard, known as a liquidity coverage ratio, or LCR, at a meeting last week in Stockholm, according to the people, who asked not to be identified because the talks are private. Regulators changed assumptions about what may happen to banks in another credit crisis, the people said. A U.K. regulator separately today said its banks may have more room to dip into liquidity buffers because of Bank of England funding.