A measure that can be used to determine whether banks have sufficient liquidity is the liquidity coverage ratio. A bank is considered to have sufficient liquidity when this ratio is

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The liquidity coverage ratio (LCR) is designed to ensure that banks have enough high-quality liquid assets to withstand a 30-day stressed funding scenario. A ratio greater than 1 indicates that a bank has more than enough liquid assets to cover its short-term liabilities, which is considered sufficient liquidity.

A Measure That Can Be Used to Determine Whether Banks