EC published the text of the Commission Delegated Regulation on liquidity coverage requirement for credit institutions. This Regulation amends the Delegated Regulation (EU) 2015/61 to supplement the Capital Requirements Regulation or CRR (EU Regulation No 575/2013). The EC consultation on this regulation ended on February 21, 2018 and EC received 19 responses to the consultation. This Commission Delegated Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.
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.
Effective Date: OJ+20 Days
Keywords: Europe, EU, Banking, LCR, CRR, Liquidity Risk, EC
Previous ArticleSBIF Extends Consultation Period for Provisions of Credit Risk
FSB finalized the toolkit of effective practices to assist financial institutions in their cyber incident response and recovery activities.
HKMA urged authorized institutions to take early action to adhere to the IBOR Fallbacks Protocol, which ISDA is expected to publish soon.
FSB published a global transition roadmap for London Inter-bank Offered Rate (LIBOR).
HM Treasury published a document that summarizes the responses received from a consultation on the approach of UK to transposition of the revised Bank Resolution and Recovery Directive (BRRD2).
HM Treasury published the government response to the feedback received on the consultation for updating the prudential regime of UK before the end of the Brexit transition period.
In a recent statistical notice, BoE announced publication of the reporting schedule for statistical returns for 2021.
EC welcomed the joint declaration by 25 EU member states on building the next generation of cloud in Europe.
MAS published amendments to Notice 648 on the issuance of covered bonds by banks incorporated in Singapore.
FDIC has selected 14 technology companies—including Accenture Federal Services, LLC, Fed Reporter, Inc, and S&P Global Market Intelligence, LLC—for inclusion in the next phase of the rapid prototyping competition.
GLEIF announced that financial institutions worldwide can realize a variety of cost, efficiency, and customer experience benefits by assuming a new “validation agent” role within the Global Legal Entity Identifier (LEI) System.