Defining Liquid Assets in the Liquidity Coverage ratio

This discussion paper presents the methodology and scope of the EBA’s forthcoming analysis on definitions of highly liquid assets. The EBA is mandated to report to the EU Commission on appropriate uniform definitions of high and of extremely high liquidity and credit quality of transferable assets and appropriate haircuts. With the input of this report, the European Commission will adopt a delegated act to implement the Liquidity Coverage Ratio (LCR) in Europe.