Liquidity Coverage (LC) Ratio Reporting for CRD IV

On Tuesday 18th March, ALMIS International hosted a webinar explaining liquidity reporting under CRD IV and particularly the new liquidity coverage (LC) reports and ratio. This was a popular event and was attended by over 40 ALMIS banks and building societies. Here’s a summary of what we discussed, together with feedback from our participants.

The Regulatory Perspective

Basel III is a global voluntary regulatory standard on bank capital adequacy, stress testing and liquidity risk. The BIS, under BASEL III, has published for the very first time, a global standard for liquidity management.

Based on this CRD IV includes two liquidity ratios and consequently, the LC return will be the first return to be submitted under COREP – due by 30th April 2014 for March 31st data.

In December 2013 the EBA published new and complex guidance for retail outflows. The PRA has also published some guidance. Whilst the LC ratio will not form part of Pillar 1 until 2015, the new regulations have significant and wide ranging implications for all UK-licenced deposit takers.

How do financial firms and system providers such as ALMIS International interpret, implement and deliver on these new regulations? Read full article