Liquidity Coverage Ratio (LCR)

  • Updated on

The liquidity coverage ratio or LCR describes the ratio of highly liquid assets secured by financial institutes, to ensure their ongoing capability to complete short-term commitments.

LCR is a generic stress analysis that intends to predict market-wide shocks and ensure that financial institutions retain appropriate capital preservation, to withstand any short-term disruptions in liquidity, that may afflict the market.


We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK