December 21, 2017
The EU’s minimum liquidity coverage ratio does not cover minimum requirements in individual currencies. Finansinspektionen (FI) believes that there is still a need for liquidity buffers in the reserve currencies Euro and US Dollars for larger Swedish banks. FI therefore reminds a memorandum describing the positions that the Authority intends to apply in the oversight of the Swedish bank’s liquidity coverage ratio in individual currencies.
As from 1 January 2018, a binding minimum requirement for liquidity coverage quotas in total currencies is specified by the EU Commission delegated act on liquidity coverage quota. As a consequence, FI’s regulations on liquidity coverage quotas (FFFS 2012: 6) are repealed.
For more information, please refer to FI’s press release here.