Foreign banks stockpile HQLA in US branches
Median FBO has 48% of total HQLA in branches, but only 31% of total assets
The US branches of foreign banking organisations are sitting on heaps of high-quality liquid assets; some even have larger liquidity buffers than their affiliated intermediate holdings companies (IHCs).
Across a sample of some of the biggest FBOs, Barclays and Deutsche Bank both held 71% of their total HQLA in their branches as of end-2018 and Royal Bank of Canada 62%.
The FBOs of MUFG and BNP
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