Liquidity Coverage Ratio and Federal Accounting Standards Advisory Board: Difference between pages

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''Bank regulation''.
''US government accounting.''  


(LCR).
(FASAB).  


The LCR is a requirement under Basel III for a bank to hold high-quality liquid assets (HQLAs) sufficient to cover 100% of its net cash requirements over 30 days.  
The Federal Accounting Standards Advisory Board is the US government Accounting Standards Board.
The Board issues a number of Statements of Federal Financial Accounting Concepts (SFFAC) and Statements of Federal Financial Accounting Standards (SFFAS) which cover aspects of accounting standards similar to those issued to the private sector by the Financial Accounting Standards Board (FASB).


This requirement has been implemented in stages from January 2015, to reach the 100% requirement by January 2019.  
Details of the FASAB's work and standards are available at: http://www.fasab.gov/




It reduces the value to a bank of cash deposit of less than 30 days tenor because they are only worth the income on the HQLAs if a bank forecasts no short term cash receipts to cover repayment.
Take care to distinguish:
 
*The ''Federal'' Accounting Standards ''Advisory'' Board (FASAB), dealing with public sector government accounting, from
The purpose of this requirement is to ensure that banks can manage stressed market conditions, under which the bank is assumed to suffer substantial outflows of the cash previously deposited with it.
*The ''Financial'' Accounting Standards Board (FASB), which deals with accounting by private sector companies.
 


== See also ==
== See also ==
* [[Basel III]]
* [[Financial Accounting Standards Board]]
* [[Net stable funding ratio]]
* [[Statement of federal financial accounting concept]]
* [[Cash investing in a new world]]
* [[Statement of federal financial accounting standard]]
* [[Leverage ratio]]
* [[Liquidity buffer]]
* [[Liquidity risk]]
* [[LR]]


[[Category:Compliance_and_audit]]
[[Category:Accounting,_tax_and_regulation]]
[[Category:Liquidity_management]]

Revision as of 21:41, 29 May 2024

US government accounting.

(FASAB).

The Federal Accounting Standards Advisory Board is the US government Accounting Standards Board.

The Board issues a number of Statements of Federal Financial Accounting Concepts (SFFAC) and Statements of Federal Financial Accounting Standards (SFFAS) which cover aspects of accounting standards similar to those issued to the private sector by the Financial Accounting Standards Board (FASB).

Details of the FASAB's work and standards are available at: http://www.fasab.gov/


Take care to distinguish:

  • The Federal Accounting Standards Advisory Board (FASAB), dealing with public sector government accounting, from
  • The Financial Accounting Standards Board (FASB), which deals with accounting by private sector companies.


See also

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