Global regulators gave banks four more years and greater flexibility on Sunday to build up cash buffers so they can use their reserves to help struggling economies grow.
The pull-back from a draconian earlier draft of new global bank liquidity rules, which aim to help prevent another financial crisis, went further than banks had expected by allowing them a broader range of eligible assets.
Banks had complained they could not meet the January 2015 deadline to comply with the new rule on minimum holdings of easily sellable assets, known as the liquidity coverage ratio, and at the same time supply credit to businesses and consumers.
The new rules will be phased out in the rule from 2015 over four years and widen the range of assets banks can put in the buffer to include shares and retail mortgage-backed securities, as well as lower rated company bonds.
The new, less liquid assets can only be included at a hefty discount to their value.