FIA Europe welcomes the opportunity to provide feedback to the European Commission on the public hearing on the Liquidity Coverage Requirement and the Leverage Ratio that the Commission organised on 10 March 2014.
On 17 March 2014, several trade associations sent a letter to the Basel Committee about its revised Basel III Leverage Ratio framework and disclosure requirements that it had published in January 2014 (BCBS270 document). Having reviewed the European Banking Authority’s report on the impact of differences in leverage ratio definitions - and following the public hearing - FIA Europe reinforces some of the points raised in the letter sent to the Basel Committee. It also highlights some of the areas of uncertainty of interpretation that remain outstanding with a view to providing guidance in areas that would benefit from clarification in the European Commission’s draft Delegated Act that is to be published pursuant to CRR Article 456(1)(j).
The key recommendations can be found in the full letter and attachments.
