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Gold Market Little Impacted by Basel 3, Bank Regulator Says (1)

Nov. 17, 2021, 6:21 PM

Liquidity rules introduced in the wake of the 2008 financial crisis have had only a limited impact on precious metals markets, according to the Europe’s top banking regulator.

A study by the European Banking Authority found no evidence that so-called Basel 3 funding requirements negatively impacted precious metals markets. Banks were compliant with the rules long before they came into force this year, and there was only a limited impact on market liquidity, the EBA said.

The London Bullion Market Association has previously warned that higher costs as a result of the rules -- requiring banks set aside capital to ...