EC Amends Regulation on Liquidity Coverage Requirements for Banks

The key changes relate to the following:

• Calculation of expected liquidity outflows and inflows on repurchase agreements, reverse repurchase agreements, and collateral swaps transactions with the international liquidity standard
• Treatment of certain reserves held with third-country central banks
• Waiver of the minimum issue size for certain non-EU liquid assets
• Application of the unwind mechanism for the calculation of the liquidity buffer
• Integration in the LCR Delegated Regulation of the new criteria for simple, transparent, and standardized securitizations

Given the limited amount of changes to the existing LCR Delegated Regulation, it is proposed to adopt the amendments to that Regulation rather than the whole new text. This would maintain the structure of the original LCR Delegated Regulation. In accordance with Article 462 of the CRR, EC remains empowered to review the Delegated Regulation for an indeterminate period of time.

Related Links 

• Delegated Regulation
• Draft of Regulation

Effective Date: OJ+20 Days

Keywords: Europe, EU, Banking, LCR, CRR, Liquidity Risk, EC