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25 September 2015

EBA recommends to the EU Commission retention of maturity ladder in the ITS on additional liquidity monitoring metrics


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The EBA issued an Opinion to the European Commission dissenting to its proposed amendment to remove the maturity ladder from the EBA final draft ITS on additional liquidity monitoring metrics.


The final draft Implementing Technical Standard (ITS) submitted by European Banking Authority (EBA) on 18 December 2013 (a slightly updated submission took place on 24 July 2014) include a set of metrics relating to the additional monitoring tools which are designed to complement the supervision of an institution's liquidity risk beyond the scenario for which the liquidity coverage ratio (LCR) is defined. These final draft ITS were built on the basis of the definition of liquid assets for the purposes of reporting in the CRR.

The Commission considers that the maturity ladder needs to be adapted to the detailed definitions of liquid assets set by Commission Delegated Regulation (EU) 2015/61 (Delegated Act on the LCR), published in the Official Journal on 17 January 2015. For this reason, the Commission suggests removing the maturity ladder from the ITS also because, in its view, it would avoid unnecessary regulatory burden and the duplication of implementation costs for the industry.

As explained in detail in the Opinion, the EBA, while sharing some of the concerns raised by the EU Commission, deems it essential to keep the maturity ladder in the ITS considering the relevance of the metric in the liquidity risk assessment by supervisors and the need to have a harmonised metric for this purpose. On the other hand, 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.

Press release

Opinion on ITS on AMML



© EBA


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