In parallel to the work of the CEBS, the ECB, in cooperation with the BSC, is conducting work aimed to investigate (i) the typology of EU banks’ liquidity stress-testing techniques and contingency funding plans, (ii) the performance of stress-tests during the turmoil and (iii) the implications of identified shortcomings for counterparties and money markets.
As we gather here, the banking sector is at the deep end of rolling out a transparent pricing mechanism, whereby all banks are required to price their loans based on a common reference rate, the Kenya Banks’ Reference Rate (KBRR). This was the first of the recommendations by the Committee.