Article 412 Liquidity Coverage Requirement

1.

Institutions shall hold liquid assets, the sum of the values of which covers the liquidity outflows less the liquidity inflows under stressed conditions so as to ensure that institutions maintain levels of liquidity buffers which are adequate to face any possible imbalance between liquidity inflows and outflows under gravely stressed conditions over a period of 30 days. During times of stress, institutions may use their liquid assets to cover their net liquidity outflows.

2.

Institutions shall not double count liquidity outflows, liquidity inflows and liquid assets.

Unless specified otherwise in Chapter 2 of the Liquidity Coverage Ratio (CRR) Part, where an item can be counted in more than one outflow category, it shall be counted in the outflow category that produces the greatest contractual outflow for that item.

3.

Institutions may use the liquid assets referred to in paragraph 1 to meet their obligations under stressed circumstances as specified under Article 414.

4.

The provisions set out in Title II (Liquidity Reporting) shall apply exclusively for the purposes of specifying reporting obligations set out in Article 415.

[Note: This rule corresponds to Article 412 of the CRR as it applied immediately before revocation by the Treasury.]