On 18 December 2013, the European Banking Authority (EBA) published and submitted to the European Commission (the Commission) the implementing technical standards (ITS) on additional liquidity monitoring metrics under article 415(3)(b) of the Capital Requirements Regulation (CRR). A slightly updated submission took place on 24 July 2014.
On 13 August 2015, the Commission informed the EBA that it intended to amend the draft ITS that had been submitted. In particular, the Commission advised that it intended to remove the maturity ladder templates and instructions. This was based on the fact that the maturity ladder is based on the provisional approach of reporting requirements set out in article 416 CRR concerning liquid assets and needs to be adapted to the detailed definitions of liquid assets set by the Commission Delegated Regulation on the liquidity coverage ratio (the Delegated Regulation) which becomes applicable on 1 October 2015. The Commission also stated that it intended to provide some other minor redrafts and amend the proposed date of application from 1 July 2015 to 1 January 2016 to allow sufficient time for the industry and supervisors to prepare. The Commission invited the EBA to update the maturity ladder in line with the detailed information of liquid assets set by the Delegated Regulation and submit this as soon as possible.
The EBA has now published an opinion on the Commission’s intention to amend the draft ITS. In particular whilst sharing some of the concerns raised by the Commission, the EBA feels that it is essential to keep the maturity ladder in the ITS considering the metric in the liquidity risk assessment by supervisors and the need to have a harmonised metric for this purpose. However, the EBA supports the proposed amendment made by the Commission on the date of application of the ITS to be moved from 1 July 2015 to 1 January 2016.
View EBA recommends to the EU Commission retention of maturity ladder in the ITS on additional liquidity monitoring metrics, 23 September 2015