Industry steps up pressure on EU liquidity ratio

LONDON – Representatives of the European securitisation market have stepped up efforts to encourage the European Commission and European Banking Authority (EBA) to modify the proposed liquidity coverage ratio (LCR) under the EU’s Capital Requirements Directive (CRD IV). The industry’s concern revolves around the definition of high-quality liquid assets (HQLA), the assets that banks can hold as a buffer against a sudden freeze in funding markets.