Expert panel on liquidity

On the expert panel on liquidity, supervisors report in particular on current trends and discussions in similar working groups at the European and international levels, in which they deem banking industry involvement to be necessary. Complex and multinational business structures, innovative financial products, and changes in customer and funding behaviour have thrust bank liquidity risk ever more into the spotlight of banking regulation. What is more, the initial phase of the 2007-08 financial crisis showed how solvency issues in the banking sector could well impact on liquidity in financial markets. These developments, and the lessons learned from them, lay behind global efforts to roll out quantitative minimum liquidity standards as part of the Basel III regime, which were also implemented into European law. The formulation of global and European liquidity standards was also a major cue for setting up the expert panel on liquidity.

This expert panel deals notably with the following topics.

  • Management of liquidity risk at banks
  • Regulatory and prudential developments
  • Appropriate regulatory treatment of liquidity risk for different business franchises and strategies, and financial products
  • Questions surrounding the interpretation and application of new liquidity provisions