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Regulation

US regulators want banks to have a year's worth of liquidity

Rule to be proposed today would affect large US banks and could crimp industry profits, critics say

US regulators want banks to have a year's worth of liquidity
Photo: iStockPhoto

Large US banks would have to prove they have enough cash to withstand severe market turmoil lasting as long as a year under a new rule set to be proposed on April 26.

The regulation would require about 30 of the country's biggest banks to adjust their balance sheets, cutting the odds they would run into the kind of funding crunch that crippled Bear Stearns and Lehman Brothers in 2008.

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