Liquidity Coverage Requirement under the Delegated Regulation of the European Commission and Basel III Rules - a Comparative Study

• Authors: Patora Karolina
• Languages of publication: EN

Abstracts

EN

The article presents the principal conclusions from the analysis of the delegated act on the liquidity coverage requirement adopted by the European Commission in October 2014. The delegated act was analysed in line with the Basel IIII accord in order to identify the main differences and to assess whether the alterations proposed by the European Commission pose a threat to the prudential objective of the liquidity regulation. The main conclusion is that the prudential objective of the liquidity coverage requirement cannot be assured as the majority of changes proposed to the delegated act, as compared with the Basel rules, lead to an increase in the average level of the ratio, while the main purpose of the European Commission was to stimulate growth and facilitate lending to the real economy.

Keywords

EN

liquidity risk; bank risk management; liquidity regulation

• Publisher: Bankowy Fundusz Gwarancyjny
• Journal: Bezpieczny Bank
• Year: 2015
• Issue: 2 (59)
• Pages: 25-46

Contributors

author

Patora Karolina

• University of Lodz

References

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• 2.Commission Delegated Regulation (EU) 2015/61 of 10 October 2014 to supplement Regulation (EU) 575/2013 with regard to liquidity coverage requirement for Credit Institutions, OJL11, 17.1.2015.
• 3. Directive 2013/36/EU􀁢of the European Parliament and of the Council of 26 June 2013 on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms, amending Directive 2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC, Official Journal of the European Union,
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