Liquidity Coverage Ratio

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Revision as of 16:02, 10 April 2015 by imported>Doug Williamson (Explain purpose of regulation. Source: The Treasurer, April 2015 p35.)
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Bank regulation.

A requirement under Basel III for banks to hold appropriate levels of high-quality liquid assets (HQLAs), generally at significantly higher levels than required under earlier regulations.

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