Basel III liquid asset definitions loosened in CRD IV draft
Draft legislation seen by Risk contains less prescriptive language on what counts as an eligible liquid asset under the liquidity coverage ratio
The European Commission (EC) has opted for a less prescriptive definition of liquid assets in its version of the Basel III liquidity coverage ratio (LCR), according to the latest draft of the capital requirements directive (CRD IV) – legislation that will determine how European banks implement the new Basel capital and liquidity standards.
According to a draft of CRD IV seen by Risk, liquid assets would include "transferable assets that are of extremely high liquidity and credit quality" and
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