Level 1B liquid assets and Tier 1 supplier: Difference between pages

From ACT Wiki
(Difference between pages)
Jump to navigationJump to search
imported>Doug Williamson
(Expand.)
 
imported>Doug Williamson
(Create page - source - The Treasurer 2023 Issue 2, May 2023, p10.)
 
Line 1: Line 1:
''Bank regulation - liquidity''
''Commerce - supply chains - supply chain finance (SCF).''


Level 1B liquid assets are those of the second highest liquidity quality.
A tier 1 supplier is an individual or organisation that provides a final product directly to a customer.


All of our tier 1 suppliers are direct links to ourselves, in our supply chain.


They rank in between Level 1A and Level 2 liquid assets.


Contrasted with tier 2 - and other tiers - further along our supply chain.


Level 1B liquid assets include EU covered bonds with a Credit Quality Step (CQS) of 1 and the largest minimum issue size.


They are eligible for inclusion in a regulated bank's High Quality Liquid Assets (HQLAs) with only a small haircut.
:<span style="color:#4B0082">'''''Treasury support for suppliers through supply chain'''''</span>


:"There are also alternative support structures in use, in particular what is known as ‘deep-tier’ financing.
:This approach sees treasury at end customers provide [supply chain finance] support not just to tier 1 suppliers, but also to those in tiers further along the supply chain.
:Such suppliers are mostly smaller companies and more likely to be vulnerable to economic disruption."
:''The Treasurer May 2023 Issue 2, p10.''




== See also ==
== See also ==
* [[Covered bond]]
* [[Contractor]]
* [[Credit Quality Step]]
* [[Customer]]
* [[Haircut]]
* [[Deep-tier financing]]
* [[High Quality Liquid Assets]]
* [[Subcontractor]]
* [[Level 1 liquid assets]]
* [[Supplier]]
* [[Level 1A liquid assets]]
* [[Supply chain]]
* [[Level 2 liquid assets]]
* [[Supply chain finance]]  (SCF)
* [[Tier 1 ]]
* [[Tier 2 supplier]]
* [[Tier 3 supplier]]
* [[Treasury]]
 
[[Category:The_business_context]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]
[[Category:Technology]]
[[Category:Trade_finance]]

Revision as of 11:16, 17 May 2023

Commerce - supply chains - supply chain finance (SCF).

A tier 1 supplier is an individual or organisation that provides a final product directly to a customer.

All of our tier 1 suppliers are direct links to ourselves, in our supply chain.


Contrasted with tier 2 - and other tiers - further along our supply chain.


Treasury support for suppliers through supply chain
"There are also alternative support structures in use, in particular what is known as ‘deep-tier’ financing.
This approach sees treasury at end customers provide [supply chain finance] support not just to tier 1 suppliers, but also to those in tiers further along the supply chain.
Such suppliers are mostly smaller companies and more likely to be vulnerable to economic disruption."
The Treasurer May 2023 Issue 2, p10.


See also