Level 2 liquid assets
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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%.
