Question ID
2026_7975
Legal act
Regulation (EU) No 575/2013 (CRR)
Topic
Liquidity risk
Article
10
Paragraph
c
Subparagraph
ii
COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations
Delegated Regulation (EU) 2015/61 - DR with regard to liquidity coverage requirement
Article/Paragraph
10(c)(ii)
Type of submitter
Consultancy firm
Subject matter
Clarification on the use of external credit assessments when determining HQLA eligibility of assets representing a claim on a third-country central government
Question

We seek clarification on the use of external credit assessments when determining HQLA eligibility under the provision of Article 10(c)(ii). 

Specifically, where an asset representing a claim on a third-country central government has a residual maturity of less than one year:

  1. Can a short-term credit assessment from a nominated ECAI corresponding to Credit Quality Step 1 (CQS 1) be used for the purpose of determining eligibility as a Level 1 asset?
  2. Where both long-term and short-term credit assessments are available, which assessment should be used for the purposes of the HQLA eligibility assessment?

More generally, we would be grateful for any guidance on the circumstances in which short-term external credit assessments may be used when assessing eligibility of assets for inclusion in the HQLA buffer under the LCR framework.

Background on the question

We are wondering whether short-term external credit assessments can be used when assessing eligibility of assets for inclusion in the HQLA buffer under the LCR framework.

Submission date
Rejected publishing date
Rationale for rejection

This question has been rejected because the issue it deals with is already explained or addressed in the regulatory framework, which is sufficiently clear and unambiguous.

The Single Rule Book Q&A tool has been established to provide explanations and non-binding interpretations on questions relating to the practical application or implementation of the provisions of legislative acts referred to in Article 1(2) of the EBA’s founding Regulation, as well as associated delegated and implementing acts, and guidelines and recommendations, adopted under these legislative acts.

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Status
Rejected question