37. Impediments to the asset transfer (LCR, Basel III)

Definition

In assessing whether assets are freely transferable for regulatory purposes, banks should be aware that assets may not be freely available to the consolidated entity due to regulatory, legal, tax, accounting or other impediments. Assets held in legal entities without market access should only be included to the extent that they can be freely transferred to other entities that could monetise the assets.

Related terms:

Parent term:

(2) Operational requirements (LCR, Basel III)

Sibling terms:

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