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EBA issues updated standards on liquidity coverage ratio reporting


The European Banking Authority (EBA) has published updated standards on reporting liquidity coverage ratio (LCR) for credit institutions in the European Union. 

The updated Implementing Technical Standards (ITS) aim to harmonise reporting of LCR across the EU, and include new templates and instructions to make sure that all information that is needed is collected and reported according to the European Commission's Delegated Act, the EBA said

The international banking agreement known as Basel III introduced new baseline requirements for capital, leverage and liquidity. It requires banks to increase both the quantity and quality of capital they hold, while accounting for higher levels of risk-weighted assets. The Group of Governors and Heads of Supervision, which oversees this work and of the Basel committee, is made up of central bankers from 27 countries and chaired by European Central Bank president Mario Draghi.

The LCR provides that banks must hold enough high quality liquid assets to meet their liquidity needs over a 30 day period. It is being introduced this year and will come into full effect by 2019.

The new templates and instructions only apply to credit institutions, the EBA said. Investment firms should continue reporting LCR items using the current tools.

Credit institutions should not use the new instructions until an application date is published in the EU's official journal, the EBA said.

The EBA has also published a 'LCR calculation tool', but said that this was only for information and "will not have any legal value" for reporting purposes.

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