Newsletter January 2014: Europe plays down liquidity ratio impact

LONDON – The European Banking Authority published an impact assessment for the implementation of the Liquidity Coverage Ratio (LCR) under the EU’s capital requirements regulation (CRR), which was introduced in June 2013. Banks must hold a buffer of high-quality liquid assets (HQLAs) to cope with a 30-day liquidity stress scenario. The study, released in December, was based on end-2012 results for a sample of 357 European banks with total assets of €33,000bn, covering about two-thirds of the total assets of European banks.