•  LCR and monitoring tools are mandatorily applicable to all scheduled commercial banks in much the same way as the prudential guideline. This ensures a level playing field. •  The coverage of assets under Level 2B HQLA such as equity is limited.
We are also aware of the problems of maturity mismatches on balance sheets, the challenges to raise levels of capital and the cyclical risks related to the downturn. In the money market, we see rising spreads between secured and unsecured segments, and a widening of repo prices between different types of collateral. Interbank activity remains subdued and concentrated in the very short-term maturities.