In an attempt to make the financial sector more resilient with regard to crises in general, the CRR’s newly introduced minimum liquidity standards seek to ensure banks’ liquidity at any given point in time.
The cooperative banks’ networks account for a material share in the credit supply to the households and SMEs. For the purpose of balanced liquidity regulation, the European Association of Co-operative Banks ( EACB) would like to draw the attention to a number of issues which deserve dedicated attention, such as:
- Co-operative banking networks liquidity systems;
- Committed liquidity facilities;
- Covered bonds as Level 1 assets;
- Treatment of retail deposits;
- Bonds from regional governments and local authorities;
- Cap on Level 2 assets;
- Internal flows and derogations from the inflow cap.
For further information and the full paper, please click HERE.