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Image header Agence Europe
Europe Daily Bulletin No. 10758
ECONOMY - FINANCES / (ae) banking

EBA to report on liquidity ratios later in the year

Brussels, 07/01/2013 (Agence Europe) - The European Banking Authority (EBA) will be reporting later this year on introduction by the banks of the Basel Committee's bank liquidity ratios. Internal Market Commissioner Michel Barnier commented: “I welcome the unanimous agreement reached by the Basel Committee on the revised liquidity coverage ratio and the gradual approach for its phasing-in by clearly defined dates. This is significant progress which addresses issues already raised by the European Commission. We now need to make full use of the observation period, and learn from the reports that the European Banking Authority will prepare on the results of the observation period, before formally implementing in 2015 the liquidity coverage ratio under EU law in line with the Basel standards”. At the weekend, the Basel Committee decided on liquidity coverage ratios for big banks to ensure that they can continue functioning for a month in the event of a huge exodus of funds. Under intense pressure from banks, it expanded the range of eligible assets to include shares and some company bonds, along with residential mortgage securities. The crisis scenario used to determine the rules was relaxed somewhat. The new liquidity ratio come into force in 2015, when large banks will be required to have at least 60% of the required liquidity buffers in place, with the full requirements being phased in by 2019. (MB/transl.fl)

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