EBA consults on Liquidity Coverage Ratio disclosure

The European Banking Authority (EBA) launched today a consultation on its draft Guidelines on the Liquidity Coverage Ratio (LCR) disclosure. These Guidelines harmonise and specify both the qualitative and quantitative information that institutions are required to disclose on liquidity and namely on the LCR. The consultation will run until 11 August 2016.

LCR disclosure is crucial for the assessment of liquidity risk management and for the decision making process of market participants. To this end, these draft Guidelines that the EBA is developing under its own initiative, provide uniform tools for the liquidity disclosure framework. In particular, they include (i) a qualitative and quantitative harmonised table for the disclosure of general information on liquidity risk management – already laid down in the Capital Requirements Regulation (CRR) -, as well as (ii) qualitative and quantitative templates and relative instructions for the disclosure of information on the LCR composition. In addition, they specify the key figures and metrics in the context of liquidity risk.

The application of these Guidelines is expected to take place not earlier than 30 June 2017. Comments to this consultation can be sent to the EBA by 11 August 2016.

A public hearing will take place at the EBA premises on 13 June 2016 from 15:00 to 17:00 UK time.

The EBA statement and the consultation paper are available here.

Lavanya Rathnam

Lavanya Rathnam is an experienced technology, finance, and compliance writer. She combines her keen understanding of regulatory frameworks and industry best practices with exemplary writing skills to communicate complex concepts of Governance, Risk, and Compliance (GRC) in clear and accessible language. Lavanya specializes in creating informative and engaging content that educates and empowers readers to make informed decisions. She also works with different companies in the Web 3.0, blockchain, fintech, and EV industries to assess their products’ compliance with evolving regulations and standards.

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