Denmark, UK polar opposites in Basel covered argument

The new liquidity framework being proposed by the Basel Committee on Banking Supervision poses a serious threat to the Danish mortgage credit system and would destroy the country’s adjustable rate mortgage lending, say the country’s authorities and mortgage banks. The Danes’ position is in line with that of the European Covered Bond Council and most European countries but the UK has said that covered bonds are unfit for the liquidity buffers envisaged by the Basel Committee. Read EuroWeek this week for both sides of the argument.