On the 7th January 2013 the Basel Committee on Banking Supervision published its amendments to the Liquidity Coverage Ratio (“LCR”) mechanism for the purpose of Basel III. The amendments inter alia allow the banks to rely on a more diverse range of assets for compliance with the LCR by providing for changes to the definition of “high quality liquid assets” so as to comprise Level 1, Level 2A and Level 2B assets. Changes to the outflow rates of the unused portions of committed facilities have also been implemented for the purpose of the LCR mechanism. Other changes have been introduced in order to make LCR less onerous on the banks, including its implementation in stages.

Please do not hesitate to contact us should you need further information on these changes.