In conjunction with the Conference of State Bank Supervisors, federal banking agencies have proposed new standards for funding and liquidity risk management. The move follows action last year by the Basel Committee, although the U.S. approach covers all banks – not just internationally-active ones and differs from the Basel standards in numerous respects. It will have far-reaching impact once implemented, particularly with regard to board and senior-management responsibility, use of brokered deposits and strategic planning.
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