427. It is relevant to note that part of the measures mentioned in table 18 are of a qualitative …

It is relevant to note that part of the measures mentioned in table 18 are of a qualitative nature. Where fundamental weaknesses arise, particularly in terms of management of liquidity and funding, qualitative measures should be prioritised, where possible.

Table 18. Potential and non-exhaustive supervisory measures for liquidity and funding risk

Potential supervisory measures for competent authorities in accordance with Articles 102, 104(1), points (b), (e), (f), (j), (k), (i), and (n) and Article 105 of Directive 2013/36/EU, Article 8 of Commission Delegated Regulation (EU) 2015/61, and Article 428b(5) of Regulation (EU) No 575/2013 A. require institutions to hold an LCR higher than the regulatory minimum, of such a size that shortcomings identified are sufficiently mitigated; B. require institutions to apply a minimum survival period of such length that identified shortcomings are sufficiently mitigated; Potential supervisory measures for competent authorities in accordance with Articles 102, 104(1), points (b), (e), (f), (j), (k), (i), and (n) and Article 105 of Directive 2013/36/EU, Article 8 of Commission Delegated Regulation (EU) 2015/61, and Article 428b(5) of Regulation (EU) No 575/2013 C. require institutions to hold a minimum total amount of liquid assets or counterbalancing capacity, of such a size that identified shortcomings are sufficiently mitigated; D. require institutions to hold a NSFR higher than the regulatory minimum, of such a size that shortcomings identified are sufficiently mitigated; E. require institutions to hold a minimum total amount of available stable funding, of such a size that identified shortcomings are sufficiently mitigated; F. impose specific liquidity requirements, including restrictions on maturity mismatches between assets and liabilities; G. impose administrative penalties or other administrative measures, including prudential charges; H. impose requirements on the concentration of the liquid assets held, including:

• - requirements for the composition of the institution’s liquid-assets profile in respect of counterparties, currency; and/or
• - caps, limits or restrictions on funding concentrations. I. impose restrictions on short-term contractual or behavioural maturity mismatches between assets and liabilities, including:
• - limits on maturity mismatches (in specific time buckets) between assets and liabilities;
• - limits on minimum survival periods; and/or
• - limits on dependency on certain short-term funding sources, such as money market funding.

J. impose additional or more frequent reporting requirements on liquidity positions, including:

• - the frequency of regulatory reporting on LCR; and/or
• - the frequency and granularity of other liquidity reports, such as ‘additional monitoring metrics’. K. require action to be taken to address deficiencies identified with regard to the institution’s ability to identify, measure, monitor and control liquidity risk, by means including:
• - enhancing its stress testing capacity to improve its ability to identify and quantify material sources of liquidity risk to the institution;
• - enhancing its ability to monetise its liquid assets;
• - enhancing its liquidity contingency plan and liquidity early warning indicators framework; and/or
• - enhancing reporting of liquidity management information to the institution’s management body and senior management. L. require action to be taken to amend the institution’s funding profile, including:
• - reducing its dependency on certain (potentially volatile) funding markets,, such as wholesale funding markets, such as wholesale funding;
• - reducing the concentration of its funding profile with respect to counterparties, peaks in the long-term maturity profile, (mismatches in) currencies, etc.; and/or
• - reducing the amount of its encumbered assets, potentially differentiating between total encumbrance and overcollateralisation (e.g. for covered bonds, margin calls). M. Require additional or more frequent reporting on the institution’s funding positions, including:
• - increased frequency of regulatory reporting relevant to the monitoring of the funding profile (such as the NSFR report and ‘additional monitoring metrics’); and/or
• - increased frequency of reporting on the institution’s funding plan to the supervisors. N. Require actions to be taken to address deficiencies identified with regard to the institution’s control of funding risk, including:
• - requiring actions to be taken to address deficiencies identified with regard to the institution’s control of funding risk, including:
• - enhancing reporting on funding risk to the institution’s management body and senior management;
• - restating or enhancing the funding plan; and/or
• - placing limits on its risk appetite;
• - enhancing the institution’s stress testing capabilities by means including requiring the institution to cover a longer stress period.

1. Forbhreathnú

1.1 Tagairtí

• Airteagal 428b 5.
• Article 8 Operational requirements

1.2 Ceanglais aitheanta

1.3 Caighdeáin ghaolmhara

2. Ceanglais aitheanta

3. Caighdeáin ghaolmhara

• EBA - Published by the European Banking Authority at https://www.eba.europa.eu/