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ECB’s Draghi Criticizes Global Regulators’ Bank Liquidity Rule

European Central Bank President Mario Draghi criticized a liquidity rule proposed by global regulators for lenders, telling lawmakers that the standard discourages banks from lending to each other.

The measure, known as a liquidity coverage ratio, “strongly penalizes interbank lending,” Draghi said in a closed-door session of the European Parliament in Brussels. Bloomberg News obtained a recording of his comments, some of which were published by Italian news agency AGI yesterday.