The liquidity coverage ratio, which is measured under the Basel III guidelines, is the ratio of a bank's _________ to its ___________.

Question

Quizplus · Accepted Answer

The liquidity coverage ratio (LCR) under Basel III guidelines is defined as the ratio of a bank's high-quality liquid assets to its total net cash outflows over a 30-day stress period. This ensures that the bank has enough liquid assets to cover its short-term obligations.

The Liquidity Coverage Ratio, Which Is Measured Under the Basel