Regulatory Alerts2022-08-04
Regulation on the Liquidity Coverage Ratio
The Central Bank of the Republic of Kosovo issued this regulation to establish calculation criteria and a minimum 100% threshold for the Liquidity Coverage Ratio, requiring all licensed banks to maintain an adequate stock of high-quality liquid assets. The framework mandates that institutions hold eligible Level 1 and Level 2 assets to cover net liquidity outflows during a thirty-day stress scenario, while specifying eligibility criteria, valuation haircuts, and consolidation rules for foreign subsidiaries. Banks must report their LCR daily to the CBK and immediately notify the regulator if the ratio falls below 100%, submitting a restoration plan to ensure continuous compliance.
Share