HQLA TIMELINE
Post‑GFC Bank Liquidity Rules Completed by Basel Committee on Banking Supervision (BCBS), Known as Basel III
Liquidity coverage ratio and net stable funding ratio rules drafted
HQLA List is Required to Support the Two New Rules
BCBS creates a criteria‑based definition of HQLA
Major Financial Jurisdictions Start HQLA Assessment
US and Europe complete their own with other BCBS members following Basel rules verbatim
Gold is a Level 2 Candidate on the European List
Gold would be used as HQLA and have between 15% and 50% RSF under NSFR
European Banking Authority (EBA) Completes the Uniform Definitions of e‑HQLA and HQLA, Which Exclude Gold
Gold failed to meet definitions due to the EBA not finding enough data to measure the liquidity attributes of gold
WGC Commissions Europe Economics to Critique EBA Methodology
Paper highlights the attributes of gold that the EBA missed in their assessment
LBMA Trade Data Reporting Mechanism
Daily OTC data becomes available
International Financial Reporting Standards (IFRS) Recognises Gold as a Currency
Paper released referencing gold’s use as a currency
WGC and LBMA Write to EU/EBA with Liquidity Findings from the New Data
EBA is asked by the European Commission to examine the impact of NSFR
EBA Report on the Impact of NSFR on the Precious Metals Market
It was argued that NSFR rules made gold funding more expensive, but the EBA rejected easing the rules since banks were already meeting the requirements
Joint WGC/LBMA Response to PRA Consultation
UK's PRA introduces interdependent precious metals permission, allowing clearing firms that meet the regulatory requirement to reduce RSF to 0%
Joint WGC/LBMA Presentation to BCBS Secretariat
Presentation of study - Gold as an HQLA
Academic Paper Issued - Is Gold a High Quality Liquid Asset?
Gold meets HQLA and is also found to perform better in financial stress events than most other assets
Suerf Paper Published
ECB Acknowledges LBMA and WGC Work in Their Financial Stability Review
Review profiles and highlights that regulators are aware of gold's performance
Gold Becomes the Second‑Largest Central Bank Reserve Asset
Wider and broader support for gold from central banks