5.2.10.7 Calculation of HQLA Transferability Restriction
Regulators across jurisdictions recognize the existence of liquidity transfer
restrictions, for banks that operate in multiple jurisdictions. Such transfer
restrictions have implications to the group-wide consolidated LCR calculations and hence
require to be treated appropriately. OFS LRRCRBI, in the LCR consolidation process,
includes the restricted HQLA from a subsidiary in the consolidated stock of HQLA only to
the extent of that subsidiary’s liquidity needs i.e. its net cash outflow, in accordance
with the regulatory requirements. The treatment of transferability restriction during
consolidation is as follows: