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High-Quality Liquid Assets (HQLA)
Assets that can be easily and quickly converted into cash with little or no loss of value. Banks are required to hold HQLA under Basel III regulations to meet short-term liquidity obligations.
Example
“U.S. Treasury bonds are classified as Level 1 HQLA because they can be sold instantly at near-face value, ensuring banks can meet withdrawal demands during a liquidity crunch.”