The application of the requirements in this document follow the existing scope of application set out in Part I (Scope of Application) of the Basel II Framework.(56) The LCR standard and monitoring tools should be applied to all internationally active banks on a consolidated basis, but may be used for other banks and on any subset of entities of internationally active banks as well to ensure greater consistency and a level playing field between domestic and cross-border banks. The LCR standard and monitoring tools should be applied consistently wherever they are applied.

High

(56) See BCBS, International Convergence of Capital Measurement and Capital Standards: A Revised Framework - Comprehensive Version, June 2006 (“Basel II Framework”).