Having just gotten from the BOE an exemption from the “Basel 3” protocol that threatened to make the “paper gold” business prohibitively expensive for bullion banks, the LBMA…
Dear Friend of GATA and Gold:
Having just gotten from the Bank of England an exemption from the “Basel 3” protocol that threatened to make the “paper gold” business prohibitively expensive for bullion banks, the London Bullion Market Association announced yesterday that the European Banking Authority has agreed to consider reducing the burden that Basel 3’s “net stable funding ratio” imposes on bullion banks in the European Union.
The LBMA statement added that the organization is “exploring further lobbying efforts” with other jurisdictions about the Basel 3 burden.
The LBMA report, headlined “Net Stable Funding Ratio: Update,” said:
“European Union: Following a request by LBMA to the European Commission, an assessment is being carried out by the European Banking Authority (EBA). The EBA shall assess whether it would be justified to reduce the net stable funding ratio for assets used for providing clearing and settlement services of precious metals or assets used for providing financing transactions of precious metals of a term of 180 days or less. The assessment will be published in November 2021.
“Other Jurisdictions Through the support of LBMA members, LBMA is exploring further lobbying efforts with other jurisdictions given that the data LBMA holds is new, and was not available when the policy decisions were made.”
The report is posted at the LBMA’s internet site here:
Whoever it was in the Bank for International Settlements who managed to insert into the Basel 3 protocols the provisions so threatening to “paper gold” does not seem to be on top today.
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
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