Implementation of the Liquidity Coverage Ratio

CENTRAL BANK CF TRINIDAD & TOBAGO
Erie Williams Plaza, Independence Square, Port-of-Spain, Trinidad, Trinidad and Tobago Postal Address: P.O. Box 1250 Telephone: (868) 621-CBTT (2288), 235-CBTT (2288); Fax:(868)612-6396 E-Mail Address: mfo@central-bank. org. tt Website: www.central-bank.org.tt October 21, 2024 CIRCULAR LETTER TO:
All Licensed Financial Institutions,
Financial Holding Companies under the Financial Institutions Act, Chap. 79:90 and The Bankers Association of Trinidad and Tobago (BATT) REF: CB-OIFI-3332/2024 IMPLEMENTATION OF LIQUIDITY COVERAGE RATIO - INDUSTRY FEEDBACK ON THE DRAFT FINANCIAL INSTITUTIONS (LIQUIDITY) REGULATIONS AND DRAFT LIQUIDITY COVERAGE RATIO GUIDELINE By Circular Letter dated July 31, 2024, the Central Bank of Trinidad and Tobago ("Central Bank") sought the banking sector's feedback on the Draft Financial Institutions (Liquidity) Regulations ("Liquidity Regulations") and the Draft Liquidity Coverage Ratio Guideline ("LCR Guideline") by August 2024. The Central Bank, has considered the industry's comments and has included its responses to the feedback received in the attached table. The table will also be posted on the Central Bank's website at h s://www. central-bank. or .tt/core-functions/su ervision/basel-ii-iii￾im lementation. As you may be aware section 9 of the Financial Institutions Act, Chap. 79:90 ("the FIA") provides for the Minister to make Regulations for liquidity requirements and ratios and such Regulations shall besubject to the negative resolution of Parliament. In addition, section 10 of the FIA allows the Central Bank to issue guidelines on any matter it considers necessary to give effect to the Act and enable it to meets its objectives. We thank you for your cooperation and feedback during the entire consultation process on the LCR as this was instrumental to finalising the Draft Liquidity Regulations and supporting LCR Guideline. The Central Bank is seeking to implement the LCR in January 2025, subject to its timely promulgation and looks forward to your continued cooperation in this regard. Please be guided accordingly. Yours sincerely ff^L<c ^^<^^^J Patrick Solomon INSPECTOR OF FINANCIAL INSTITUTIONS Attch.