Level 2 liquid assets: Difference between revisions
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== See also == | == See also == | ||
* [[Haircut]] | * [[Haircut]] | ||
* [[High Quality Liquid Assets]] | * [[High Quality Liquid Assets]] | ||
Revision as of 15:46, 13 November 2016
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%.
