ECB is consulting on how to assess the eligibility of institutional protection schemes (IPSs) for prudential purposes. Under the CRR, an IPS is a contractual or statutory liability arrangement of a group of banks which protects the member institutions and in particular ensures their liquidity and solvency. IPSs are recognised in three euro area member countries, and about 50% of all credit institutions in the euro area are members of an IPS. Recognition of an IPS can lead to relaxation of some CRR prudential requirements if certain requirements are met. The consultation sets out the approach for ECB to follow when assessing whether those requirements have been met. Consultation closes on 15 April. (Source: ECB consults on IPSs)