Presently,
the assets allowed as the Level 1 High Quality Liquid Assets (HQLAs) for the
purpose of computing the LCR include Government
securities in excess of the minimum SLR requirement, and within the mandatory
SLR requirement:
· Government
securities allowed by RBI, under MSF is presently 2 % of the bank’s NDTL and
under Facility to Avail Liquidity for Liquidity Coverage Ratio (FALLCR) it is 5%
of the bank’s NDTL.
Henceforth, in addition to the
above-mentioned assets, banks will be permitted to reckon another 3 per cent of
their NDTL under FALLCR as level 1 HQLA for the purpose of LCR.
Hence the total carve-out from SLR
available to banks would be 10 per cent of their NDTL.
Banks should value such securities at their
current market value.
Based on RBI
Circular dt 11/02/16. Please visit www.rbi.org.in for any further clarification
if required….. Poppy
No comments:
Post a Comment