Regulatory Alerts2018-05-23
Added · Updated
Determination of outflows for products and services reported under Article 23 of LCR DR
Institutions must assess the likelihood and potential volume of liquidity outflows for products and services not covered in Articles 27-31a of the LCR Delegated Regulation, applying combined idiosyncratic and market-wide stress scenarios and considering reputational damage. Since Article 23 does not prescribe specific outflow percentages, institutions may use their own methodology to assign appropriate rates, guided by EBA standards for consistent reporting. DNB complements regular LCR reporting with an annual qualitative data request targeting banks with material outflows under Article 23 to verify reporting accuracy and methodology adequacy.
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