Difference between revisions of "Liquidity Coverage Ratio"
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== Definition == | == Definition == | ||
| − | '''Liquidity Coverage Ratio'''. (LCR) It is the ratio of current assets to current liabilities. It is an essential component of Basel III regulation. LCR shows if a financial institution has an adequate stock of unencumbered high-quality liquid assets (HQLA) that can be converted into cash easily and immediately in private markets to meet its liquidity needs for a30-calendar-day liquidity stress scenario. | + | '''Liquidity Coverage Ratio'''. (LCR) It is the ratio of current assets to current liabilities. It is an essential component of Basel III regulation. |
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| + | LCR shows if a financial institution has an adequate stock of unencumbered high-quality liquid assets (HQLA) that can be converted into cash easily and immediately in private markets to meet its liquidity needs for a30-calendar-day liquidity stress scenario. | ||
[[Category:Supply Chain Finance]] | [[Category:Supply Chain Finance]] | ||
Latest revision as of 23:41, 8 November 2021
Definition
Liquidity Coverage Ratio. (LCR) It is the ratio of current assets to current liabilities. It is an essential component of Basel III regulation.
LCR shows if a financial institution has an adequate stock of unencumbered high-quality liquid assets (HQLA) that can be converted into cash easily and immediately in private markets to meet its liquidity needs for a30-calendar-day liquidity stress scenario.
