Grandfather and Level 2B liquid assets: Difference between pages

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To exempt pre-existing arrangements from subsequent more restrictive laws or regulation.
''Bank regulation - liquidity''


Grandfathering may be applied for the full natural life of pre-existing arrangements, or for a more limited period which is considered long enough to allow new and compliant arrangements to be put in place.
Level 2B liquid assets are those of lower liquidity quality, compared with Level 2A.




'''Example'''
Level 2B liquid assets are subject to correspondingly greater haircuts of 25% to 50% when included in the computation of total High Quality Liquid Assets (HQLAs), compared with Level 2A.


''The Internal Revenue Service is extending the grandfathering protection for non-US arrangements caught under the Foreign Account Tax Compliance Act (FATCA). The protection is extended from 1 January 2013
''to six months after the regulations are finalised, estimated to be July 2013 at the earliest. FATCA imposes US withholding taxes and significant compliance obligations on financial institutions such as banks and insurance companies.''


 
== See also ==
The Treasurer, December 2012/January 2013, page 11.
* [[Haircut]]
 
* [[High Quality Liquid Assets]]
[[Category:Regulation_and_Law]]
* [[Level 1 liquid assets]]
[[Category:Taxation]]
* [[Level 2 liquid assets]]
* [[Level 2A liquid assets]]
* [[Liquidity buffer]]

Revision as of 15:45, 13 November 2016

Bank regulation - liquidity

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


Level 2B liquid assets are subject to correspondingly greater haircuts of 25% to 50% when included in the computation of total High Quality Liquid Assets (HQLAs), compared with Level 2A.


See also

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