Basel’s Liquidity Rules Ignored as EU Sides With Denmark
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The European Commission is ready to side with Denmark in agreeing to more lenient rules in the treatment of covered bonds than recommended under Basel III.
A document obtained by Bloomberg News shows that an expert group inside the commission will base talks next week on a set of figures first published by Denmark in May. That means banks will be free to use 75 percent more in covered bonds to fill liquidity buffers than allowed under Basel III rules.