Appendix 2: Basel III Liquidity Coverage Ratio (LCR)  Definition of HQLA There are two categories of assets that can be included in the stock of High Quality Liquid Assets. “Level 1” assets can be included without limit, while “Level 2” assets can only comprise up to 40% of the stock.
The decision on whether to classify a sector as carbon-intensive or not was based on its participation in the EU (European Union) Emissions Trading System. See Deutsche Bundesbank (2023). 22. See Deutsche Bundesbank (2021). 23. The survey we completed in March asked banks how far they had got with implementing the BaFin (Bundesanstalt für Finanzdienstleistungsaufsicht) Guidance Notice on Dealing with Sustainability Risks.