Liquidity Coverage Ratio to be Introduced Early in Europe?

Bloomberg is reporting that EU banks may have to be in a position to comply with the Liquidity Coverage Ratio (LCR) by 1 January 2018, a year earlier than required under Basel III.

As reported last month on this blog, the Bank for International Settlements (BIS) had agreed to relax some of the restrictions around the LCR and agreed that implementation would be phased in on 1 January 20015, with banks holding 60% of the minimum requirement initially and an extra 10% each year thereafter, until full implementation on 1 January 2019.

However, it now seems that Ireland, which holds the rotating presidency of the EU, is pressing for an agreement to have LCR implementation begin on 1 January 2015 at a 60% level and phase in over three years, taking full effect on 1 January 2018.

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