Level 1 assets can comprise an unlimited share of the pool and are not subject to a haircut under the LCR.(11) However, national supervisors may wish to require haircuts for Level 1 securities based on, among other things, their duration, credit and liquidity risk, and typical repo haircuts.

High

(11) For purpose of calculating the LCR, Level 1 assets in the stock of HQLA should be measured at an amount no greater than their current market value.