Final EU Guidelines on Liquidity Coverage Ratio Disclosure Published

The European Banking Authority published final Guidelines on liquidity coverage ratio disclosure to complement the disclosure requirements of liquidity risk management under the Capital Requirements Regulation. The CRR provides a general disclosure framework for firms for each category of risk where liquidity risk should be considered. The disclosure of key ratios and figures to regulators required under the CRR specifies the liquidity coverage ratio. The LCR is the only regulatory ratio to cover liquidity and is crucial for disclosure, as it provides essential information for the assessment of liquidity risk management and for the decision-making processes of market participants.

The Guidelines set out the general disclosure framework of risk management in relation to liquidity risk, providing a harmonized structure for the disclosure of information and detailing the information on the LCR that is required to be disclosed within the key ratios and figures. The Guidelines include: (i) a qualitative and quantitative harmonized table for the disclosure of key information; and (ii) quantitative and qualitative harmonized templates for the disclosure of the LCR composition and levels.

The Guidelines apply to firms that are in-scope of the LCR Delegated Regulation and identified as Globally and Other Systemically Important Institutions. Other banks may apply the Guidelines at the discretion of their national regulator or if they opt to do so voluntarily. The Guidelines will apply from December 31, 2017. 

View the EBA's final report and final Guidelines on LCR disclosure.