ARTICLE
3 February 2015

European Banking Authority’s Second Report On Impact of Liquidity Coverage Ratio

SS
Shearman & Sterling LLP

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On January 15, 2015, the European Banking Authority published its second impact assessment report for the liquidity coverage ratio requirements under the Capital Requirements Directive IV package.
European Union Finance and Banking
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On January 15, 2015, the European Banking Authority ("EBA") published its second impact assessment report for the liquidity coverage ratio ("LCR") requirements under the Capital Requirements Directive IV ("CRD IV") package. The report is based on data provided by 322 European banks and concludes that the LCR is not expected to have a material detrimental impact on the business and risk profile of EU-established institutions. This is mainly because EU institutions have significantly improved their compliance with LCR requirements and the potential for making adjustments to balance sheets to meet LCR requirements.

The report is available at: http://www.eba.europa.eu/documents/10180/950548/2014+LCR+IA+report.pdf .

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