Discussion on the methodology for the assessment of liquidity and funding risk under supervisory review

The EBA published today a discussion paper on the methodology for the assessment of liquidity and funding risk under supervisory review. The document, which contains a preliminary version of the common methodology for assessing liquidity and funding risk, aims at helping competent authorities and colleges of supervisors assess liquidity and funding risk and reach joint decisions on liquidity. This methodology will be part of the final SREP guidelines, which will be published for consultation in mid 2014.

The EBA is currently developing guidelines to help supervisors assess liquidity and funding risks and reach joint decisions as of 2014. The guidelines will help authorities assess liquidity and funding risks, as well as the institutions’ risk management and internal controls for mitigating these risks. They will also include a range of possible liquidity supervisory measures that can be activated in order to address identified shortcomings.

This discussion paper expresses the EBA’s preliminary views on the topic and aims at promoting discussion with stakeholders’ so as to gather their views at an early stage of the process. The input from stakeholders will inform the EBA in the development of the final SREP guidelines on this topic.

The final SREP guidelines will also be accompanied by an analysis of implied costs and benefits. The EBA will welcome all contributions and supporting data. Where required, information can be kept confidential.

Consultation process

Comments can be sent to the EBA by clicking on the "send your comments" button on the consultation page. Please note that the deadline for the submission of comments is 28.02.2014.

All contributions received will be published following the close of the consultation, unless requested otherwise.