Global banking regulators said that they have agreed on more of the details of proposed reforms to capital and liquidity rules.

The Basel Committee on Banking Supervision said that at its meeting on November 30 and December 1, it agreed on the details of the text of the new global regulatory standards on capital adequacy and liquidity. The committee expects to publish the Basel III rules text by the end of this year. The basic rules were agreed upon earlier this year, and endorsed by G20 leaders at their latest summit in Seoul.

The liquidity coverage ratio and the net stable funding ratio will be subject to an observation period and will include a review clause to address any unintended consequences, the BIS said. It also plans to publish a summary of the results of its quantitative impact study on the new regime, which was conducted earlier this year.

In addition to approving the text, the committee reviewed issues related to globally systemic banking institutions. It said that these sorts of banks should have loss-absorbing capacity beyond the Basel III standards and that work on this topic continues in the committee and at the Financial Stability Board.

The committee also reviewed a methodology to help national regulators assess the systemic importance of financial institutions. It plans to deliver a paper on these topics to the FSB by the end of this year. By mid-2011 it will complete studies of the magnitude of additional loss absorbency that global systemically important banks should have, and the extent of going-concern loss absorbency that could be provided by different instruments.

The committee also discussed cross-border banking resolution, and agreed to undertake further work to evaluate progress in national and multinational efforts to adopt improvements that enhance authorities’ capability to manage and resolve distressed banking institutions while minimizing disruptions to the financial system.

IE