The PRA has published Consultation Paper 27/14: CRD IV: Liquidity (CP27/14).

On 10 October 2014, the European Commission published a delegated act to supplement the Capital Requirements Regulation with regard to the liquidity coverage requirement (LCR) for credit institutions. The delegated act is due to enter into force by 31 December 2014 and will be directly applicable in the UK from 1 October 2015. In light of this the PRA must revoke existing rules where appropriate, and restate its overall approach to regulating liquidity.

CP27/14 is set out as follows:

  • section 1 covers how the PRA proposes to carry out the transition to its new liquidity regime, taking into account the delegated act that will apply from 1 October 2015;
  • section 2 explains the requirements the PRA proposes to place on firms beyond meeting the LCR;
  • section 3 details the elements of the PRA’s proposed new regime which will not be covered by EU legislation; and
  • section 4 contains a cost benefit analysis of the proposals.

The deadline for comments on CP27/14 is 27 February 2015.

View CRD IV: Liquidity – CP27/14, 28 November 2014