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Banks prepare for higher outflow rates on retail deposits ahead of revised liquidity coverage ratio rules

By Economic Times - 4 hours ago
Commercial banks are raising outflow rates on retail deposits as they prepare for new liquidity coverage ratio rules. These changes, effective from April 1 next year, will require more investment in high-quality liquid assets. This aims to mitigate risks of mass withdrawals, similar to the collapse of Silicon Valley Bank in the US.

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