28. Purpose of the operational requirements (LCR, Basel III)

Definition

All assets in the stock of HQLA are subject to the following operational requirements. The purpose of the operational requirements is to recognise that not all assets outlined in paragraphs 49-54 that meet the asset class, risk-weighting and credit-rating criteria should be eligible for the stock as there are other operational restrictions on the availability of HQLA that can prevent timely monetisation during a stress period.

Related terms:

Parent term:

(2) Operational requirements (LCR, Basel III)

Sibling terms:

29. Manifestation of the liquidity (LCR, Basel III)
30. Regular asset monetisation (LCR, Basel III)
31. Unencumbered characteristics of the assets (LCR, Basel III)
32. Influence of operational capability to monetise (LCR, Basel III)
33. Demonstrability of the stock control (LCR, Basel III)
34. Hedge impact (LCR, Basel III)
35. HQLA management (LCR, Basel III)
36. Consolidation of the assets (LCR, Basel III)
37. Impediments to the asset transfer (LCR, Basel III)
38. Asset classes traded in the market of limited size (LCR, Basel III)
39. Rehypothecated assets (LCR, Basel III)
40. Derivatives transaction collateral (LCR, Basel III)
41. Intraday liquidity management (LCR, Basel III)
42. Currency localisation and currency exchange risks (LCR, Basel III)
43. Mitigation period for the asset replacement (LCR, Basel III)