US banks will publish a report today arguing that the Basel Committee on Banking Supervision should relax its proposed global liquidity rule. This is the requirement that banks hold easy-to-sell assets, protecting them in the event of a short-term market crisis.

The study published by the Clearing House, representing the 11 biggest US commercial leaders, will say that liquid asset holdings have been boosted by $700 billion, nearly half the $1.5 trillion shortfall estimated by the Basel III standard.

According to the Financial Times, the report warns that forcing banks to raise raise the remaining assets will hinder their lending capacity and profits, and argues that more corporate and covered bonds should be considered as liquid assets.

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