EBA · 2026_7975 Rejected question

Clarification on the use of external credit assessments when determining HQLA eligibility of assets representing a claim on a third-country central government

Regulation
Regulation (EU) No 575/2013 (CRR)
Article
10, para. c
Topic
Liquidity risk
Submitted by
Consultancy firm
Submitted
2026-08-17
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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: 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? 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

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.
No answer published yet.

Original source: European Banking Authority, Q&A ID 2026_7975

This Q&A is published by European Banking Authority and is non-binding. It does not constitute legal advice. Updated weekly from official ESA sources.

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