The G-20 leader’s summit in the US at the moment will consider new banking regulations. In September 2008, the Basel Committee Banking Supervision (BCBS), via its Working Group on Liquidity released its revised principles for liquidity risk management and supervision. This week, the Australian Prudential Regulation Authority (APRA), which oversees the financial system released a consultation paper which incorporated the revised BCBS principles. It has created a mini-uproar because it has proposals which will force the banks to hold increased volumes of government debt. But overall, while the impost on banks will be modest they are unnecessary. Once again, modern monetary theory provides different and cleaner insights into banking.