Single Resolution Board provides a report on liquidity needs estimation in resolution
The Single Resolution Board has published its staff working paper: “Estimating liquidity needs in resolution in the Banking Union”. The document provides a methodology for the ex-ante estimation of the potential liquidity needs that banks could foresee in resolution.
The sample covers the significant institutions of the banking union under the remit of the SRB. The methodology proposed here is meant to foster the debate on liquidity needs in resolution, and suggests, given the magnitude of such liquidity gaps, that more liquidity tools could be beneficial to strengthen financial stability in the Banking Union.
In this alert you will read more about the background of liquidity in resolution, and also about the methodology backing and supporting the report.