Danish FSA issues rules on LCR Reporting for Banks from 2017

November 1, 2016

The Danish FSA has issued rules on LCR reporting for banks starting in 2017. This covers changes in liquidity reporting (Form LI) for banks from 2017, and new items in ILAAP reports for banks and mortgage companies on LCR outflows under Article 23

The FSA believes that all banks can have potential outflows in the form of guarantees, loan offers and disbursements. Mortgage banks have potential outflows associated with loan offers and loan payments. Therefore, banks and mortgage banks should regularly assess the likelihood and potential size of outflows within the next 30 days as far as products or services under Art. 23 of the LCR-regulation. FSA proposes that all banks and mortgage specify and tackles these outflows in connection with the annual ILAAP report as of 31/12/2016. The FSA will add outflows in accordance with Art. 23 in the guidance on inventory and assessment of liquidity position and liquidity risk (ILAAP Guide) during 2017.

The FSA will phase out liquidity reporting in Form LI by 1 January 2017. The last submission of Form LI for data with reference date end-December 2016, and reporting period 12 working days after the end of the month, ie January 17 2017.

Further details can be found on the website here.


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