Table III.

New LCR haircut

AssetHaircut
Level 1 Assets
Cash (If between ceiling and floor)0
Central bank reserves (If between ceiling and floor)0
Level 2 Assets 
Ṣukūk or other Sharīʿah-compliant securities issued by multilateral development banks (MDBs)5
Sovereign Ṣukūk (Ijārah Ṣukūk) having secondary markets and based on tangible assets5
Perpetual Ṣukūk or long-term securities5
Esham5
Sovereign Ṣukūk (Wakālah [partnership] Ṣukūk) having secondary markets and based on a pool of assets10
Risk-sharing instruments issued for public finance but can be sold on the secondary market10
EXIMS10
Other new structured liquid instruments issued by Sovereigns15
Other Sharīʿah-compliant instruments issued by public sector entities (PSEs)25
Corporate Ṣukūk based on AAA – AA rating50
Corporate Ṣukūk based on A rating60
Corporate Ṣukūk based on BBB – BB rating70
Source: Authors’ own

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