Level 2 liquid assets: Difference between revisions

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== See also ==
== See also ==
* [[Haircut]]
* [[Haircut]]
* [[High Quality Liquid Assets]]  (HQLA))
* [[High Quality Liquid Assets]]  (HQLAs)
* [[Level 1 liquid assets]]
* [[Level 1 liquid assets]]
* [[Level 2A liquid assets]]
* [[Level 2A liquid assets]]
* [[Level 2B liquid assets]]
* [[Level 2B liquid assets]]
* [[Liquidity]]
* [[Liquid]]
* [[Liquidity ]]
* [[Liquidity buffer]]
* [[Liquidity buffer]]



Latest revision as of 08:07, 4 May 2022

Bank regulation - liquidity

Level 2 liquid assets are those of lower liquidity quality, compared with Level 1.


Level 2 liquid assets include certain qualifying high quality corporate obligations.

They can be included - in part - in the calculation of a regulated bank's High Quality Liquid Assets (HQLAs), but subject to haircuts.

The size of the % haircut depends on the liquidity quality, according to a fixed scale from 15% to 50%.


See also