This discussion paper presents the methodology and scope of EBA’s forthcoming analysis. Following the outcome of the analysis, the EBA will report to the European Commission on appropriate definitions of high and extremely high liquidity and credit quality of transferable assets for the purpose of the LCR including suggested haircuts. The rationale for publishing the DP at this time is to gather thoughts and useful insights on the methodology that will be employed. The DP is strictly focused on the methodology and does not forward any analytical outputs at this stage.