Letter of credit and Level 2B liquid assets: Difference between pages

Revision as of 15:29, 13 November 2016

Bank regulation - liquidity

Level 2B liquid assets are those of lower liquidity quality, compared with Level 2A.

Level 2B liquid assets are subject to correspondingly greater haircuts when included in the computation of total HQLAs, compared with Level 2A.

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-(LC).
+''Bank regulation - liquidity''
-A promise document issued by a bank or another issuer to a third party to make a payment on behalf of a customer in accordance with specified conditions.
+Level 2B liquid assets are those of lower liquidity quality, compared with Level 2A.
-Letters of credit are frequently used in international trade to make funds available in a foreign location.
+Level 2B liquid assets are subject to correspondingly greater haircuts when included in the computation of total HQLAs, compared with Level 2A.
 == See also ==
-* [[Advising bank]]
+* [[Credit Quality Step]]
-* [[Bank payment obligation]]
+* [[Haircut]]
-* [[Clean letter of credit]]
+* [[HQLA]]
-* [[Commercial risk]]
+* [[Level 1 liquid assets]]
-* [[Condition]]
+* [[Level 2 liquid assets]]
-* [[Confirmed letter of credit]]
+* [[Level 2A liquid assets]]
-* [[Confirming bank]]
+* [[Liquidity buffer]]
-* [[Credit]]
-* [[Documentary credit]]
-* [[Irrevocable letter of credit]]
-* [[Issuing bank]]
-* [[LOC backed]]
-* [[Standby letter of credit]]
-* [[Uniform Customs and Practice for Documentary Credits]]
-==Other links==
-[http://www.treasurers.org/node/5279 Letters of credit and supply chain finance, Will Spinney, ACT 2009]
-[[Category:Trade_Finance]]
-[[Category:Credit_Risk]]
-[[Category:Managing_Risk]]