The Basel Committee on Banking Supervision (previously known as the Basle Committee or the Bâle Committee, which always made me think it had something to do with Ba’al) has been meeting this week and plotting to transform the world of banking regulation. The two big changes that the UN Security Council of banking regulators has in store, according to a story on Risk.net (via FT Alphaville) have to do with liquidity ratios and  with capital requirements for derivatives transactions. Here’s the word on liquidity ratios:

the Committee made much progress on the two liquidity ratios that have been drawn up by its liquidity working group – one ratio to mandate the size and composition of a liquid assets buffer, and the other to constrain banks’ ability to use short-term funding for longer-term assets.