BaFin issues the Draft of the Second Regulation to Amend the Liquidity Regulation, including the amended reporting forms, for consultation.

Reason for the amendment:

Pursuant to Article 412 (5) CRR, Member States may maintain national provisions in the area of liquidity requirements before binding minimum standards for liquidity coverage requirements are fully introduced in accordance with Article 460 CRR. By 1 January 2018, the liquidity coverage ratio (LCR) will have been gradually raised to 100 %. At the Commission’s request, the EBA examined what consequences a gradual raising of the LCR to 100 % by 2018 would have in order to assess if the phase-in should be extended by another year. In its report of 21 December 2016, EBA did not see any strong reasons to extend the phase-in period.

Thus, once the LCR has been fully introduced, the Liquidity Regulation, which is based on national law, will cease to apply with effect of 1 January 2018. The Liquidity Regulation remains valid only for credit institutions to which the provisions of Articles 411 to 428 CRR do not apply. In accordance with section 2 para. 9d German Banking Act, the provisions of Articles 411 to 428 CRR also continue to not apply to CRR investment firms. Therefore, they also fall within the scope of the Liquidity Regulation. This is taken into account by the Draft Regulation to Amend the Liquidity Regulation presented in so far as it limits the scope of application and deletes regulations which contained provisions solely for certain groups of institutions within CRR credit institutions.

Due to the amended law, double reporting no longer applies to the institutions concerned. This means a considerable relief for the credit industry. It is expected that the amended Regulation will not result in any additional costs for groups of institutions which must continue to apply the Liquidity Regulation. Amendments to the reporting forms are minor, since only lines have to be deleted which are no longer relevant due to the smaller number of users.

View draft of the Second Regulation to amend the Liquidity Regulation