Disruptor and Liquidity Coverage Ratio: Difference between pages
From ACT Wiki
(Difference between pages)
imported>Doug Williamson (Add link.) |
imported>Baseby2@msn.com No edit summary |
||
| Line 1: | Line 1: | ||
''Bank regulation''. | |||
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 will be implemented during 2015 and will reduce 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 revenue 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]] | ||
*[[ | * [[Net stable funding ratio]] | ||
*[[ | * [[Cash investing in a new world]] | ||
* [[ | * [[Leverage ratio]] | ||
*[[Liquidity risk]] | |||
[[Category:Compliance_and_audit]] | |||
[[Category:Liquidity_management]] | |||
Revision as of 12:56, 24 July 2015
Bank regulation.
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 will be implemented during 2015 and will reduce 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 revenue 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.
