Technical advice on liquidity risk management for the European Commission has been published by the Committee of European Banking Supervisors (CEBS). It takes the form of a report published on 15 August 2007 in response to the EC’s call for advice in March this year on the regulatory frameworks for supervising liquidity risk adopted in the EEA. The EC is interested in the reasons for different approaches being adopted. The report notes that only a few countries have made major changes to their regulatory frameworks, there is broad agreement on the aims of liquidity supervision and the effect of growth of the EU had led to more tensions in regulatory requirements experience by domestic banks owned by foreign parent banks. CEBS will continue work on a number of issues in the report and this work is due by the end of January 2008.
