Chargeable equity and liabilities: excluded equity and liabilities: sovereign stock-lending liabilities
Paragraph 32 of Schedule 19
Sovereign stock lending liabilities, that is the liabilities relating to the requirement of the lender to redeliver the cash collateral underpinning a stock lending arrangement involving high quality securities are excluded from the bank levy.
CTA2010/S805 defines a stock lending arrangement and CTA2009/S556 defines securities. A high quality security has the same meaning as for sovereign repo liabilities, that is either:
- high quality debt securities issued by a government or central bank of an EEA State, Australia, Canada, Japan, Switzerland or the United States of America and which met the criteria for credit rating and currency denomination specified in the FSA Handbook, or
- securities issued by a designated multilateral development bank or supranational institution.
See BKLM331200 for more details of high quality securities.