Assets allowed
as the Level 1 High Quality Liquid Assets (HQLAs) for computing the LCR include
Government securities in excess of the minimum SLR requirement and, within the
mandatory SLR requirement, Government securities to the extent allowed by RBI
under MSF [2 per cent of the bank’s NDTL] and under Facility to Avail Liquidity
for Liquidity Coverage Ratio (FALLCR) [9 per cent of the bank’s NDTL].
Hence, the total carve-out from SLR available to
banks would be 11 per cent of their NDTL. For this purpose, banks should
continue to value such reckoned government securities within the mandatory SLR
requirement at an amount no greater than their current market value.
Based on RBI notification dated 21/07/2016. For any further
clarification, please refer www.rbi.org.in
--------------Poppy
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