IBANK 8.4.10 Level 1 HQLA

Level 1 HQLA consists of:

(a) currency notes and coins;
(b) reserves held with the Qatar Central Bank, to the extent that they are capable of being drawn down immediately during a period of liquidity stress;
(c) sukuk and other Shari'a-compliant marketable securities that satisfy all of the following conditions:
(i) they are issued or guaranteed by a sovereign, a central bank, a public sector entity, an MDB or the IILMC;
(ii) they are assigned a risk weight of 0% under Part 4.4;
(iii) they are not an obligation of a financial institution nor of a related party of a financial institution;
(iv) they are traded in large, deep and active repo or cash markets with a low level of concentration;
(v) they have a proven record as a reliable source of liquidity in the markets (repo or sale) even under stressed market conditions; and
(d) sukuk and other Shari'a-compliant marketable securities that are not assigned a risk weight of 0% under Part 4.4, but:
(i) meet the conditions in paragraphs (c) (iii), (iv) and (v); and
(ii) are either:
(A) sovereign or central bank securities issued in the domestic currency of either the jurisdiction in which the firm's liquidity risk is taken or the firm's home jurisdiction; or
(B) sovereign or central bank securities issued in a foreign currency, up to the amount of the firm's stressed net cash outflows in that currency stemming from the firm's operations in the jurisdiction in which the firm's liquidity risk is taken.
Note The Regulatory Authority may approve assets of other kinds as level 1 HQLA — see rule 8.4.13.
Inserted by QFCRA RM/2018-2 (as from 1st May 2018).