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Article (6) Quantitative Requirements

C 33/2015 STA Effective from 3/1/2022
  1. a.This article addresses the quantitative requirements contained in the regulations and emphasises the key focus of the Central Bank in its on and off site examination of IB.
  2. b.The quantitative requirements come into force on 30 June 2022, meanwhile, IBs must continue to report based on the existing enforceable standards. Any IB that expects to be in breach of the Regulations and Standard must approach the Central Bank to discuss a remediation plan. Breaches will be dealt with on a case by case basis. The Central Bank will apply proportionality in determining the suitability of some of the more complex requirements for smaller IBs.

Liquidity Ratios

  1. c.There are four main liquidity ratios:
    1. i.Eligible Liquid Asset Ratio (“ELAR”),
    2. ii.Advances to Stable Resources Ratio (“ASRR”),
    3. iii.Liquidity Coverage Ratio (“LCR”), and
    4. iv.Net Stable Funding Ratio (“NSFR”).

    IBs that apply and are approved to be assessed under LCR and NSFR cannot elect to revert to the ELAR regulatory framework and once approved must comply with both LCR and NSFR.