A widely accepted method measuring liquidity risk exposure of a DI is core deposits over total assets ratio.

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A widely accepted method for measuring liquidity risk exposure of a depository institution (DI) is not the core deposits over total assets ratio. Instead, liquidity risk is often assessed through metrics such as the liquidity coverage ratio (LCR) or the net stable funding ratio (NSFR), which are designed to ensure that financial institutions have enough high-quality liquid assets to cover their short-term liabilities. Core deposits over total assets ratio is more indicative of the funding structure and stability rather than a direct measure of liquidity risk.

A Widely Accepted Method Measuring Liquidity Risk Exposure of a DI