ABBL
Association des Banques et Banquiers, Luxembourg
The Luxembourg Bankers' Association
Luxemburger Bankenvereinigung
Liquidity is the ability of a bank to fund increases in assets and meet obligations as they come due, without incurring unacceptable losses. The fundamental role of banks in the maturity transformation of short-term deposits into long-term loans makes banks inherently vulnerable to liquidity risk, both of an institution-specific nature and that which affects markets as a whole. Virtually every financial transaction or commitment has implications for a bank’s liquidity.
Effective liquidity risk management helps ensure a bank's ability to meet cash flow obligations, which are uncertain as they are affected by external events and other agents' behaviour. Liquidity risk management is of paramount importance because a liquidity shortfall at a single institution can have system-wide repercussions. Financial market developments in the past decade have increased the complexity of liquidity risk and its management.
(Source: Basel Committee on Banking Supervision)
Articles
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08/01/2012
The Group of Governors and Heads of Supervision (GHOS) endorsed the Committee's comprehensive approach to monitoring and reviewing implementation of the Basel regulatory framework. GHOS Chairman and Governor of the Bank of England Mervyn King noted that "the focus on implementation represents a significant new direction for the Basel Committee. The level of scrutiny and transparency applied to the manner in which countries implement the rules the Committee has developed and agreed will help ensure full, timely and consistent implementation of the international minimum requirements".
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01/12/2011
Following a first study in Q1/2011, a second local Quantitative Impact Study (QIS) of the new liquidity standards for credit institutions, based on the version published by the Basel Committee on Banking Supervision (BCBS) in December 2010, was conducted in Q2/2011 jointly by the BCL and the CSSF.
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18/10/2011
The Basel Committee on Banking Supervision issued on 18 October 2011 its first Progress report on Basel III implementation. The report provides a high-level view of Basel Committee members' progress in adopting Basel II, Basel 2.5 and Basel III, as of end September 2011.
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29/09/2011
The Basel Committee agreed on 28 th September 2011 a range of measures to finalise key elements of its policy agenda and to put in place a strong implementation assessment framework.
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20/07/2011
The European Commission has brought forward proposals to change the behaviour of the 8000 banks that operate in Europe. The overarching goal of this proposal is to strengthen the resilience of the EU banking sector while ensuring that banks continue to finance economic activity and growth.
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06/07/2011
To promote consistent global implementation of Basel III, the Committee has agreed to periodically review frequently asked questions and publish answers along with any technical elaboration of the rules text and interpretative guidance that may be necessary.
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21/06/2011
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16/06/2011
On 24 May 2011, the ABBL organised a conference on the new Basel III liquidity rules. On this occasion, the Luxembourg Central Bank (BCL) and the financial supervisor CSSF presented, for the first time, their joint impact assessment of the new liquidity rules on Luxembourg banks. The Quantitative Impact Study (QIS) was performed jointly by the BCL and the CSSF, assessing the impacts of the two new liquidity standards developed by the Basel Committee, the Liquidity Coverage Ratio (LCR) and the Net Stable Funding Ratio (NSFR).
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01/06/2011
On 24 May 2011, the ABBL organised a conference on the new Basel III liquidity rules. On this occasion, the Luxembourg Central Bank (BCL) and the financial supervisory authority CSSF presented, for the first time, their joint impact assessment of the new liquidity rules on Luxembourg banks. A large audience, consisting of around 300 risk managers, compliance officers, treasurers and other concerned financial professionals, amply demonstrated that this issue is followed with great interest by the Luxembourg financial community.
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27/05/2011
"Europe will implement Basel III: we have said it before and I confirm it to you today, the Commission's proposals to implement Basel III will respect the balance and level of ambition included in Basel 3".
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Last udpate April 2012
