The European Banking Authority (EBA) launched today for consultation a proposal to review its Implementing Technical Standards (ITS) on additional monitoring metrics for liquidity, which mainly consists of reintroducing a maturity ladder in line with the reporting requirements laid down in the Commission’s Delegated Act on the Liquidity Coverage Ratio (LCR). These revised ITS aim at providing Competent Authorities with harmonised information on institutions’ liquidity risk profile, taking into account the nature, scale and complexity of their activities. The consultation runs until 2 January 2017.
The revised maturity ladder will require less detail on assets other than high quality liquid assets and on credit steps. It also captures the outflows from committed facilities as well as those due to downgrade triggers. In addition, a memorandum section has been included in the revised ITS to provide details on five LCR components, which help estimate any upcoming volatility of the LCR. Finally, the composition of the time buckets has been amended and the number of rows to be reported reduced.
Comments to this consultation can be sent to the EBA by clicking on the "send your comments" button on the consultation page. Please note that the deadline for the submission of comments is 2 January 2017.
All contributions received will be published following the close of the consultation, unless requested otherwise. A public hearing will then take place at the EBA premises on 14 December 2016 from 11.00 to 13.00 UK time.
Legal basis and background
These draft ITS have been developed according to Article 415(3)(b) of the Capital Requirements Regulation, which mandates the EBA to develop uniform formats and IT solutions with associated instructions for frequencies and reference and remittance dates for the purpose of liquidity reporting.
The EBA originally submitted its final draft ITS on additional monitoring metrics for liquidity on 18 December 2013 and a slightly updated version on 24 July 2014. On 1 March 2016, the Commission adopted the ITS without the maturity ladder as, in its view, the latter was based on the provisional approach of reporting requirements on liquid assets and, therefore, needed to be adapted to the detailed definitions of liquid assets laid down in the Commission’s Delegated Act on the LCR.
- Abanka d.d.
- Association for Financial Markets in Europe
- Austrian Federal Economic Chamber, Division Bank and Insurance
- Bank of Cyprus
- Czech Banking Association
- French Banking Federation
- German Banking Industry Committee
- Intesa Sanpaolo S.p.A.
- Portuguese Banking Association (APB)
- Verband der Auslandsbanken in Deutschland e.V. | Association of Foreign Banks in Germany