1. Liquidity Risk Regulatory Calculations for Reserve Bank of India User Guide
  2. Liquidity Coverage Ratio Calculation
  3. Process Flow
  4. Identification of Asset Levels

5.2.1 Identification of Asset Levels

High Quality Liquid Assets (HQLA) are assets that can be easily sold or used as collateral to obtain funds at little or no loss of value even under stress scenarios, All assets, whether owned by the bank or received from counterparties as collateral, that meet the high quality liquid asset criteria specified by RBI, are classified by the application as follows:

  • Level 1 Assets
  • Level 2A Assets
  • Level 2B Assets

Level1 assets can be included 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 as Other Asset.