This guidance would help address the concern expressed by servicers that expanding the rate of principal reductions may expose them to increased litigation risks even in situations where the servicer reasonably determines that such action is beneficial to investors in comparison to other available options.
The LCR requirement in each significant foreign currency and on a consolidated basis was increased to 70% on 31 January 2018 and will be gradually increased every year to reach 100% by 31 January 2020.