ABBL: Second impact assessment of the new liquidity rules for Luxembourg banks

01 December 2011

Following a first study in Q1/2011, a second local Quantitative Impact Study (QIS) of the new Liquidity standards for credit institutions, based on the version published by the BCBS in December 2010, was conducted jointly in Q2/2011 by the BCL and the CSSF.

The main objectives were:

• assessing the impact of the new liquidity standards on Luxembourg banks;
• identifying any unintended consequences, which could result from the introduction of the liquidity standards at local level;
• raising awareness of the new liquidity standards among the Luxembourg banking community at an early stage of the observation period; and
• providing input to Luxembourg authorities’ position in international discussions.

Next steps:

During 2012, CSSF (Commission de Surveillance du Secteur Financier) and BCL (Banque Centrale du Luxembourg) will continue to monitor regularly the evolution and the impact of the new liquidity ratios on the local banking sector. It is planned to request data on a quarterly basis from those banks that have already participated in the two impact studies. All other credit institutions are invited to participate and to submit their respective data on a voluntary basis.

Regular reporting on at least a quarterly basis of the new ratios to the supervisory authorities will be based on harmonised standards currently developed by the European Banking Authority, and will start officially by January 1, 2013. After a transition period, the new ratios are expected to be binding as from January 1, 2015 for the LCR and probably January 1, 2018 for the NSFR, within the scope of application and following the operational details foreseen in the current Capital Requirements Directive (CRD IV) proposal of the EU Commission (July 20, 2011).

Full information

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