Fair value hierarchy and High Quality Liquid Assets: Difference between pages

Latest revision as of 11:53, 25 June 2022

Bank regulation.

(HQLAs).

High Quality Liquid Assets are ones which are good enough to include as part of a bank's Liquidity Coverage Ratio (LCR) evaluation.

HQLAs should be:

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-''Financial reporting - IFRS 13''.
+''Bank regulation''.
-IFRS 13 seeks to increase consistency and comparability in fair value measurements and related disclosures through a 'fair value hierarchy'.
+(HQLAs).
+High Quality Liquid Assets are ones which are good enough to include as part of a bank's Liquidity Coverage Ratio (LCR) evaluation.
-The hierarchy categorises the inputs used in valuation techniques into three levels i.e. Level 1, Level 2 and Level 3.
-*Level 1 inputs: quoted prices in active markets for identical assets or liabilities that the entity can access at the measurement date.
+HQLAs should be:
+*Unencumbered;
+*Liquid in markets during a time of stress; and
+*Ideally, eligible for discounting with the central bank.
-*Level 2 inputs: inputs other than quoted market prices that are observable for the asset or liability, either directly or indirectly.
-*Level 3 inputs: unobservable inputs for the asset or liability.
+== See also ==
+* [[ALA]]
+* [[Central bank]]
+* [[Credit Quality Step]]  (CQS)
+* [[Level 1 liquid assets]]
+* [[Level 2 liquid assets]]
+* [[Liquidity]]
+* [[Liquidity Coverage Ratio]]
+* [[Liquidity risk]]
+* [[Stress]]
+* [[Unencumbered]]
+[[Category:Identify_and_assess_risks]]
-== See also ==
+[[Category:Manage_risks]]
-* [[Fair value]]
+[[Category:Liquidity_management]]
-* [[FVTPL]]
-* [[FVTOCI]]
-* [[IFRS 13]]
-* [[International Accounting Standards Board]]