FI’s Pillar 2 requirements for Liquidity Coverage Quotas in Individual Currencies

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 As a consequence, FI’s regulations on liquidity coverage quotas (FFFS 2012: 6) are repealed.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.