Bank buffer
Global central bank chiefs agreed to water down and delay a planned bank liquidity rule to counter warnings that the proposal would strangle lending and stifle the economic recovery. Lenders will be allowed to use an expanded range of assets, including some equities and securitized mortgage debt, to meet the so-called liquidity coverage ratio, or LCR, following a deal struck by regulatory chiefs representing nearly 30 countries in Basel, Switzerland. Banks will also have an extra four years to fully comply with the measure.
IMF & Egypt
Egypt President Mohamed Morsi added fellow Islamists to a reshuffled government and the new finance minister pledged to finish talks on a potential $4.8 billion IMF loan to stave off a currency crisis that risks provoking more popular unrest.
Euro woes
Euro-region banks may shrink their loan books by 132 billion euros ($172 billion) this year in response to tougher regulation and capital rules, according to Ernst & Young. The outlook for bad loans in the eurozone has also worsened.