What’s happening?
In October 2014, one of Michel Barnier’s last acts as European commissioner for the internal market and services was to finalise the delegated acts implementing the liquidity coverage ratio (LCR) for EU banks. Under this rule, a bank must hold a buffer of high quality liquid assets (HQLA) that could be sold down to cover 100% of outflows during a 30-day stress scenario in which the bank was unable to raise fresh wholesale funding.