BaFin Decides Not to Implement Circular on LCR Disclosure Guidelines
BaFin notified that it will not implement the circular (Circular 14/2018) on guidelines on liquidity coverage ratio (LCR) disclosures in Germany. The circular was intended to implement the the relevant EBA guidelines on LCR disclosures, which complement the disclosure requirements of liquidity risk management in accordance with Article 435 of the Capital Requirements Regulation (CRR). Therefore, the circular was rendered obsolete by the revised Capital Requirements Regulation (CRR 2). BaFin had launched a consultation on this circular in July 2018.
The disclosure requirements in the two regulations (CRR and CRR 2) differ materially. BaFin also notified that it will not implement the EBA guidelines on liquidity requirements until the new disclosure requirements for LCR under the CRR 2 apply. This will be the case from June 28, 2021. Nonetheless, institutions are encouraged to continue to comply with the existing requirements of CRR and to prepare for the disclosure requirements of CRR 2.
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Keywords: Europe, Germany, Banking, LCR, Disclosures, CRR, CRR2, Liquidity Risk, EBA, BaFin
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