“U.S.LCR”).1WhiletheLCRisdesignedtopromoteshort-termliquidityresiliencebyensuringthataffectedbankingorganizationsmaintainhighqualityliquidassetstofundtheirshort-termliquidityneedsintimesofstress,theNSFRaimstoreducefundingriskoveralongerhorizonbyrequiringaffectedbankingorganizationstohaveavailablestablesourcesoffundingfor...
Supervisors use these criteria to calculate banks’ liquidity coverage ratio. Assets that are considered liquid in almost all circumstances, such as highly rated government bonds, count as 100% in this calculation. Assets that are likely to be harder to sell without a loss during a crisis are ...