Global central bank chiefs gave lenders four more years to meetinternational liquidity requirements and watered down the measuresin a bid to stave off another credit crunch.

Banks won the delay to fully meet the so-called liquiditycoverage ratio, or LCR, following a deal struck by regulatorychiefs meeting yesterday in Basel, Switzerland. They'll be able topick from a longer list of approved assets including equities andsecuritized mortgage debt as they seek to build up buffers ofliquidity for use in a financial crisis.

“This was a compromise between competing views from around theworld,” Bank of England Governor Mervyn King said at a briefingfollowing yesterday's meeting. King chairs the Group of Governorsand Heads of Supervision, or GHOS, which decides on global bankrules. “For the first time in regulatory history we have a trulyglobal minimum standard for bank liquidity.”

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