Level 2 liquid assets: Difference between revisions
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Level 2 liquid assets include certain qualifying high quality corporate obligations. | 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 == | == See also == | ||
* [[Credit Quality Step]] | * [[Credit Quality Step]] | ||
* [[ | * [[Haircut]] | ||
* [[High Quality Liquid Assets]] | |||
* [[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 buffer]] | * [[Liquidity buffer]] | ||
Revision as of 15:40, 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%.
