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.
Supervisors may also choose to include within Level 2 an additional class of assets (Level 2B assets). If included, they will be within the 40 percent limit on Level 2 assets and comprise no more than 15 percent of the total stock of HQLA.