In this case, the cost to each bank is incurred because the HQLA earn a lower yield than alternative, less liquid assets that the bank could otherwise hold, such as mortgages or business loans. For HQLA securities to be of sufficient quality and liquidity, they should be both low risk and actively traded in markets.
Andreas Dombret: German unity and European integration – where are we heading? Speech by Dr Andreas Dombret, Member of the Executive Board of the Deutsche Bundesbank, at the ceremony marking the Day of German Unity, Münster, 2 October 2016. * * *  1.