39. Rehypothecated assets (LCR, Basel III)

Definition

Banks should not include in the stock of HQLA any assets, or liquidity generated from assets, they have received under right of rehypothecation, if the beneficial owner has the contractual right to withdraw those assets during the 30-day stress period.(10)

Additional information:

(10) Refer to paragraph 146 for the appropriate treatment if the contractual withdrawal of such assets would lead to a short position (eg because the bank had used the assets in longer-term securities financing transactions).

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)
37. Impediments to the asset transfer (LCR, Basel III)
38. Asset classes traded in the market of limited size (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)