The completion of the Liquidity Coverage Ratio (LCR) rules among various countries is proceeding, with the US releasing its final policy. On the euro front, another document was leaked, with most parameters remaining the same.

The Finnish Ministry of Finance presented proposals for the implementation of the CRD IV and CRR framework to parliament last Thursday (17 April), with the proposals in line with expectations, according to an official from the Federation of Finnish Financial Services.

CRR-compliant covered bonds rated at least A- should count toward liquidity buffers with the Covered Bond Label playing a role as a quality criterion under a new approach the European Covered Bond Council (ECBC) has suggested to the EC ahead of its final decision on LCRs.

The Danish government announced a new package of bank regulations today (Thursday), including details on the capital requirements for systemically important financial institutions (SIFIs).

Ane Arnth Jensen, managing director of the Association of Danish Mortgage Banks (Realkreditrådet), spoke to Nordic FIs & Covered about regulatory issues that could impact Denmark’s system.

Standard & Poor’s expects a shift in the Danish mortgage market towards longer term and CITA-linked loans, despite questions about their popularity in light of the costs associated with such mortgage products.

Covered bonds should count as Level 1 assets under CRD IV, the ECBC argued in a position paper released on Monday, with this treatment particularly important for domestic covered bonds in Denmark as it would otherwise be “simply impossible” for the country’s financial institutions to fulfil LCR requirements.