Member States government bonds

In accordance with Article 415(1) of Regulation (EU) No 575/2013 (CRR), Article 416 specifies the liquidity reporting obligation until the liquidity coverage requirement is fully specified and implemented in accordance with Article 460. Commission Delegated Regulation (EU) 2015/61 adopted in accordance with Article 460, specifies in detail the general liquidity coverage requirement established by Article 412(1) of CRR and is applicable from 1 October 2015. Article 10(1)(c)(i) of the Delegated Regulation (EU) 2015/61 considers all assets representing claims on or guaranteed by the central government of a Member State to be eligible as Level 1 assets. Article 17(1) of the Delegated Regulation establishes no maximum percentage of the liquidity buffer for Level I assets excluding extremely high quality covered bonds referred to in Article 10(1)(f). Article 6(b) of the Delegated Regulation provides that to be eligible to form part of a credit institution's liquidity buffer, the liquid assets shall comply with the operational requirements laid down in Article 8. Paragraph 1 of that Article provides that credit institutions shall have policies and limits in place to ensure that the holdings of liquid assets comprising their liquidity buffer remain appropriately diversified at all times. The competent authorities may not impose specific restrictions or requirements on Government bonds issued by a Member State to ensure compliance with the requirement set out in Article 8(1) where the conditions in Article 8(1)(b) are satisfied. DISCLAIMER This question goes beyond matters of consistent and effective application of the regulatory framework. A Directorate General of the Commission (Directorate General for Financial Stability, Financial services and Capital Markets Union) has prepared the answer, albeit that only the Court of Justice of the European Union can provide definitive interpretations of EU legislation. This is an unofficial opinion of that Directorate General, which the European Banking Authority publishes on its behalf. The answers are not binding on the European Commission as an institution. You should be aware that the European Commission could adopt a position different from the one expressed in such Q&As, for instance in infringement proceedings or after a detailed examination of a specific case or on the basis of any new legal or factual elements that may have been brought to its attention.