1. User Guide
  2. Bank for International Settlements Basel III Liquidity Ratio Calculation
  3. Liquidity Coverage Ratio Calculation
  4. Liquidity Ratio Calculation Process Flow
  5. Asset Level Identification

15.2.2.1 Asset Level Identification

All assets, whether owned by the bank or received from counterparties as collateral, that meet the high quality liquid asset criteria specified by BIS, are classified as follows:
  • Level 1 Assets
  • Level 2A Assets
  • Level 2B RMBS Assets
  • Level 2B Non-RMBS Assets

Level 1 assets can be included in the stock of HQLA without limit and Level 2 assets can only comprise 40% of the stock of HQLA. Of this, Level 2B assets can only comprise of 15% of stock of HQLA. Any asset not classified as an HQLA is considered an Other Asset.