Recital 1

(1)Article 416(3) of Regulation (EU) No 575/2013 requires institutions to report assets as liquid assets where they meet certain conditions. In accordance with the third subparagraph of that Article, the condition that the assets are eligible collateral for standard liquidity operations of a central bank in a Member State or the central bank of a third country, may be waived for liquid assets held to meet liquidity outflows in a currency in which there is an extremely narrow definition of central bank eligibility.