Posts Tagged ‘ LCR ’

Issuer ratings out, Art 129(7) added in new LCR draft leak

Jul 24th, 2014
Drapeaux européens devant le Berlaymont

Issuer ratings look set to have been scrapped as LCR eligibility criteria for covered bonds and a transparency requirement introduced, according to a leaked EC document on the delegated act that the Commission is likely to finalise in September.

Danes laud leaked Commission paper with covered in Level 1

May 16th, 2014
AppMargrethe Vestager_1

A leaked document by European Commission staff circulating this week confirms statements from two Danish ministries last Friday that certain large, highly rated covered bonds will be eligible as Level 1 assets for Liquidity Coverage Ratio purposes, albeit with an overall cap of 70% and a haircut of 7%.

2A+ status and higher limit seen as likely LCR result from Commission

May 8th, 2014

The EC is steering toward keeping covered bonds as Level 2 assets for LCR purposes but allowing them to make up a larger share, according to sources, and an EC spokesperson said “talks are progressing well” about a solution addressing Danish concerns.

ECBC pitches Label, A- covered LCR plan to EC

Apr 4th, 2014

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.

EC stresses EU-specific factors to raise Level 1 LCR hopes

Jan 16th, 2014
Press conference by Michel Barnier

The European Commission will take into account “features specific to the EU banking system and financial markets” in addition to European Banking Authority (EBA) reports and international standards when deciding on covered bonds’ status in the LCRs, according to an EC spokesperson.

EBA recommends against Level 1 for covered

Jan 9th, 2014
EBA image

The European Banking Authority (EBA) has excluded covered bonds from assets it has recommended should be eligible as extremely high quality liquid assets for Liquidity Coverage Ratio (LCR) purposes in a report to the European Commission.

EBA says LCR Level 2 only for covered: Does it actually matter for euro markets?

Jan 9th, 2014

The EBA on 20 December published its final recommendations on the Liquidity Coverage Ratio (LCR), which exclude covered bonds from Level 1 status. Crédit Agricole CIB’s Florian Eichert takes a closer look at the potential implications, and sees investor behaviour only really changing in response to a lower minimum rating criterion. 

Level 1 exclusion feared but ECBC says it’s not game over

Dec 5th, 2013
Helle Thorning-Schmidt_resized

Fears are mounting that covered bonds could fail to secure a position as Level 1 LCR assets after it emerged that the EBA’s Board of Supervisors is against such a recommendation. However, the ECBC and others have said that Level 1 inclusion remains a real possibility.

Interview: Thomas Östros, Swedish Bankers’ Association

Sep 26th, 2013
Thomas Ostros, managing director at the Swedish Bankers Association

Thomas Östros, managing director at the Swedish Bankers’ Association, spoke to Nordic FIs & Covered about the state of the Swedish banking sector, risks stemming from the NSFR, the potential for regulatory overreach, and more.