If the method of measurement of assets or liabilities changes because of e.g. losing (or obtaining) access to quotations observed on an active market, such assets or liabilities are reclassified between Levels I and II.
Assets or liabilities are reclassified between Levels II and III (or accordingly between Levels III and II) when:
Reclassifications between different levels of the fair value hierarchy are effected on the date ending each quarter according to the value as at that date.
The outbreak of the COVID-19 pandemic translated indirectly into an increase in volatility on the financial markets and a decrease in the liquidity of certain market segments, such as, in particular, corporate and municipal securities. This resulted in the reclassification of some assets to lower fair value levels.
In 2020, the following transfers of assets between fair value levels were made:
In 2019, the following transfers of assets between fair value levels were made: