Liquidity Coverage Ratio and Office of the Comptroller of the Currency: Difference between pages

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''Bank regulation''.
(OCC).


(LCR).
1. ''United States''


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 Office of the Comptroller of the Currency is responsible for the regulation of nationally chartered banks in the US, including internet-based banks.  


This requirement has been implemented in stages from January 2015, to reach the 100% requirement by January 2019.  
It issues the national charters and monitors bank performance and loan credit quality ratings.  




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.  
2.


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.
Similar governmental functions in other countries.




== See also ==
==See also==
* [[Basel III]]
*[[Agrentina]]
* [[Net stable funding ratio]]
*[[United States]]
* [[Cash investing in a new world]]
* [[Leverage ratio]]
* [[Liquidity buffer]]
* [[Liquidity risk]]
* [[LR]]
* [[Survival period]]
 
[[Category:Compliance_and_audit]]
[[Category:Liquidity_management]]

Revision as of 10:43, 21 May 2017

(OCC).

1. United States

The Office of the Comptroller of the Currency is responsible for the regulation of nationally chartered banks in the US, including internet-based banks.

It issues the national charters and monitors bank performance and loan credit quality ratings.


2.

Similar governmental functions in other countries.


See also

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