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imported>Doug Williamson |
imported>Administrator |
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| ''Bank regulation''.
| | An accounting reserve which arises in group accounts on the application of Merger accounting to a business combination. |
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| (LCR).
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| 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.
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| It applies throughout the European Union.
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| The LCR has been implemented in stages from 2015, to reach the 100% requirement by January 2019.
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| 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.
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| 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.
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| == See also == | | == See also == |
| * [[Basel III]] | | * [[Group accounts]] |
| * [[European Union]] | | * [[Merger accounting]] |
| * [[Net stable funding ratio]] | | * [[Reserves]] |
| * [[Cash investing in a new world]]
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| * [[HQLA]]
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| * [[Leverage ratio]]
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| * [[Liquidity buffer]]
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| * [[Liquidity risk]]
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| * [[LR]]
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| * [[OLAR]]
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| * [[Pillar 1]]
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| * [[Required Stable Funding]]
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| * [[Survival period]]
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| [[Category:Compliance_and_audit]]
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| [[Category:Liquidity_management]]
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Revision as of 14:20, 23 October 2012
An accounting reserve which arises in group accounts on the application of Merger accounting to a business combination.
See also
