The International Banking Federation (IBFed) has called for a more global approach towards liquidity reporting in the banking industry.
IBFed is also encouraging the Basel Committee to utilise panels of supervisors to tailor the optimal liquidity reporting for specific financial institutions from a range of different options.
According to IBFed this would enhance banking stability by removing unnecessary, duplicated reporting and would help the banks to cut costs.
IBFed’s Basel working party chairman, Simon Hills, has said that a single standard of liquidity reporting does not promote the best management of risk, singling out the example of banks operating in different countries who have to supply differing reports to each of the national authorities.
Hills went on to stress he understood a quick fix was unlikely but urged the industry to move towards a more harmonised set of reporting standards on an international basis.
Last week the Bank of International Settlements (BIS) hosted a summit in Switzerland to address fears that banks were beginning to return to excessive risk taking.