Liquidity coverage ratio disclosure standards - consultative document
BCBS, July 19, 2013
The Basel Committee on Banking Supervision has today issued for consultation Liquidity coverage ratio disclosure standards.
Following the publication of the LCR standard
in January 2013, the Basel Committee indicated its intention to develop
associated disclosure standards. Public disclosure improves
transparency, reduces uncertainty in the markets and strengthens market
discipline. To promote the benefits of disclosure the Committee believes
that it is important that banks adopt a common disclosure framework to
help market participants consistently assess the liquidity risk position
of banks. Moreover, to promote consistency and ease of use of
disclosures related to the LCR, the Basel Committee has agreed that
internationally-active banks across Basel member jurisdictions will be
required to publish their LCR according to a common template.
In designing the disclosure standards for the LCR, the Basel
Committee has balanced the benefits of promoting market discipline
against the challenges associated with disclosure of liquidity positions
under certain circumstances, including the potential for undesirable
dynamics during periods of stress.