New Bank Liquidity Rules in the EU: A Blessing or a Curse?
From October 2015, banks must meet additional liquidity requirements in the EU. The cep introduces the new rules and highlights their impact.
In December 2010, the Basel Committee called for quantitative requirements in order to enhance banks’ capability to absorb liquidity shocks. From October 2015, banks must meet additional liquidity requirements in the EU (Liquidity Coverage Ratio, LCR). This cepInput deals with the LCR rules. We illustrate the future challenges banks will be facing in the EU, the implicit political agenda followed by the Commission and the wider repercussions to be expected.