International banks have given greater flexibility and a longer deadline to meet Basel III liquidity rules.
Banks now have until 2019 to build up cash buffers, known as the 'liquidity coverage ratio', to shield against a potential short-term market crisis.
Previously, banks were given a January 2015 deadline to comply with the new rules.
However, last night the Basel Committee on Bank Supervision extended the deadline to give banks more time to adjust to the new regime.
Banks now only need 60% of the necessary short-term funding in 2015, and have until 2019 to fully implement the liquid coverage ratio.
Banks have also been granted more flexibility regarding which assets they can hold. Equities and mortgage-backed securities can now also be included in the liquid coverage ratio.
Under the new regulation, banks will have to hold enough cash and liquid assets to overcome a 30-day crisis.
The rules were brought in to avoid another financial meltdown or a run on any particular institution, such as happened with Northern Rock.
The extension will be warmly welcomed by the banking industry. Many had labelled the rules 'draconian' when they were first announced in 2010, complaining they could restrict lending and hamper economic growth.
Barclays shares were up 3.55% to 286.52p, Lloyds climbed 1.72% to 50.72p, RBS was up 1.26% at 338p, and HSBC rose 0.69% to trade at 672.2p this morning.
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