Basel III will up costs for EU banks trading gold

Vienna

NEW liquidity rules for banks in the European Union could raise costs for those trading gold by up to 300 per cent, forcing them to withdraw from the market, the head of the London Bullion Association (LBMA) said.

Banks were found to be undercapitalised after the financial crisis began in 2007, forcing taxpayers to bail out many lenders and prompting the development of a global set of tougher rules known as Basel III.