Double-A LCR rating threshold could be dropped
The AA- rating threshold for the eligibility of covered bonds in bank liquidity buffers proposed under Basel III’s Liquidity Coverage Ratio (LCR) could be dropped under proposals for the fourth iteration of the Capital Requirements Directive (CRD IV), the European Covered Bond Council’s plenary session in Munich heard on Wednesday. CRD IV is the European Union's vehicle for implementing the Basel III regime.
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