US foreign bank rules sap UBS liquidity buffer
HQLA fell Sfr2 billion in the second quarter, down 17% since US IHC formed
The Federal Reserve's foreign bank rules have barred UBS from including large amounts of assets into the calculation of its liquidity coverage ratio (LCR).
The bank’s average total amount of high-quality liquid assets (HQLA) eligible for its group-wide LCR dropped Sfr2 billion ($2.02 billion) in the three months to June, to Sfr181 billion. UBS said the decline was due to an uplift in the amount of HQLA at its US holding company subject to intragroup transfer restrictions.
UBS Americas LLC was
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