LCR implementation delay may help ABS

EC 230x150
By Bill Thornhill
28 Jul 2014

Implementation of the liquidity coverage ratio (LCR) in Europe is set to be delayed by 10 months according to a leak last week of a draft European Commission document. The treatment of ABS in the LCR, seen by the industry as unfavourable compared to covered bonds, was not changed in the leaked draft, but the delay could provide time to hammer out the details of more equitable regulatory treatment, said bankers on Monday.

The latest draft of European liquidity rules to leak from the EC last week included the unexpected delay to implementation of the rules.

Banks will now need to meet 60% of their LCR requirement by October 2015, instead of by the original January 2015 deadline.

“Discussions are quite complex and ...

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