Under the Capital Requirements Regulation (CRR), credit institutions and investment firms must respect a general liquidity coverage requirement to ensure that a sufficient proportion of their assets can be made available in the short term. Under Article 460 of the CRR, the European Commission is required to specify the detailed rules for EU-based credit institutions. The Commission has now adopted a delegated act that lays down a full set of rules on the liquid assets, cash outflows, cash inflows needed to calculate the precise liquidity coverage requirements.

The Commission has also adopted a delegated act that amends Article 429 of the CRR. Its purpose is to ensure that EU credit institutions and investment firms use the same methods to calculate, report and disclose their leverage ratios which express capital as a percentage of total assets (and off balance sheet items).

View Commission adopts prudential rules for banks and insurers to stimulate investment in the economy, 10 October 2016

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