The regulator is introducing the second of the two Basel III liquidity ratios
, namely, structural liquidity ratio
(also known as the net stable funding ratio, NSFR).
Capital adequacy and liquidity ratios
would also need to be maintained at their current strong levels.
It should be noted that the liquidity ratios
have predictive characteristics.
Views still clash on liquidity ratios
, essentially on the long-term liquidity ratio
(NSFR - net stable funding ratio).
Taipei, July 16, 2012 (CENS) -- The Financial Supervisory Commission (FSC) plans to follow the new version of Basel Capital Accord and introduce two new standards for the liquidity ratios
of financial institutions, which will entail stricter definitions for qualified liquid assets.
Customer concentrations in both loans and deposits and tighter than sector-average liquidity ratios
were set to be the main focus of three-way talks on the reform of prudential banking requirements, known as CRD IV-CRR (a regulation and a directive).
In the previous report on the Bank, a 'Positive' Outlook had been appended to its FSR in view of the positive trend in liquidity ratios
and the expectation of rising net profitability.
The European Commission will have to present a proposal that establishes a compromise between the positions of the European Parliament and the Council on the immediate inclusion of two liquidity ratios
in the reform of capital requirements for banks, known as CRD IV-CRR (a regulation and a directive).
CI also notes the UAB's loan-based liquidity ratios
had improved at end 2013 and despite the worsening of key ratios at the end of the first quarter of 2014, the trend has reversed and end 2014 ratios are likely to show further improvements.