Liquid assets fall $56bn at US G-Sibs, clipping LCRs
Rate rises and Fed balance sheet policy may affect HQLA values
Most systemically important US banks saw their stocks of high-quality liquid assets (HQLA) erode in 2018, leading them to post diminished liquidity coverage ratios (LCRs) compared with a year ago.
The aggregate amount of HQLA reported by the eight global systemically important banks (G-Sibs) for end-2018 was $2.28 trillion, down 2% from $2.34 trillion at end-2017. HQLA forms the numerator for the LCR.
Level 2A HQLA, made up of government-sponsored entity debt and non-US sovereign bonds, fell
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