British banks are lobbying the U.K. Financial Services Authority to loosen liquidity requirements, which go even further than those adopted by the Basel Committee on Banking Supervision. Banks have complained the FSA’s requirements to hold extra assets will make them less efficient and limit their lending capacity, a claim the agency disputes. Bankers have also pressed the FSA to allow securitized assets to be counted toward the liquidity requirements, arguing growth of the securitization markets would otherwise be hindered.

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