The oversight body of the Basel Committee on Banking Supervision has extended the deadline on 100% liquidity requirements by four years.
The deadline, which was originally set for 2015, has been rearranged to coordinate with Basel III capital adequacy requirements. The deadline has now been set for 2019, with a new 60% minimum requirement for 2015, followed by annual increases of 10%.
The Group of Governors and Heads of Supervision (GHOS) of the committee said such a "graduated approach" will "ensure that the liquidity coverage ratio can be introduced without disruption to the orderly strengthening of banking systems or the ongoing financing of economic activity."
The GHOS also agreed to expand the range of assets considered High Quality Liquid Assets (HQLA), and said that at time of stress "it would be entirely appropriate for banks to use their stock of HQLA, thereby falling below the minimum".
Nigel Willis of advisory firm Deloitte, said the combination of changes "strikes a welcome balance between the competing demands of raising regulatory standards to increase confidence in the global financial system, and not impeding the recovery of the global economy."