Last Updated on January 28, 2022 by Admin 3
What is the purpose of the Liquidity Coverage Ratio?
- to mitigate market replacement risk across markets
- to eliminate funding mismatches by establishing a minimum acceptable amount of stable funding
- to ensure that banks have enough high-quality liquid assets to survive a 30-day period of acute market stress
- to minimize duration risk on a bank’s assets over a one-year horizon