Liquidity Coverage Ratio and Merchant: Difference between pages

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''Bank regulation''.
''Payment systems - credit and debit cards.''


(LCR).
In the context of credit and debit cards, a merchant is a business that sells goods and services via cards, whether online or physically presented.
 
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.
 
This requirement has been implemented in stages from January 2015, to reach the 100% requirement by January 2019.
 
 
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.
 
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.




== See also ==
== See also ==
* [[Basel III]]
* [[Acquirer]]
* [[Net stable funding ratio]]
* [[Card scheme]]
* [[Cash investing in a new world]]
* [[Credit card]]
* [[Leverage ratio]]
* [[Debit card]]
* [[Liquidity buffer]]
* [[European Association of Payment Service Providers for Merchants]]
* [[Liquidity risk]]
* [[Payment service provider]]
* [[LR]]
* [[Payments and payment systems]]
* [[Survival period]]
* [[PSD2]]
* [[Recourse]]
* [[Strong Customer Authentication]]


[[Category:Compliance_and_audit]]
[[Category:The_business_context]]
[[Category:Liquidity_management]]
[[Category:Cash_management]]
[[Category:Financial_products_and_markets]]

Revision as of 09:06, 22 July 2019

Payment systems - credit and debit cards.

In the context of credit and debit cards, a merchant is a business that sells goods and services via cards, whether online or physically presented.


See also