– LCR meaning in finance The LCR is one of the ratios mentioned in the Basel III regulatory accord that is used to measure and mitigate the systematic risks that exist within the banking sector. It measures the ability of a bank to withstand short-term liquidity problems due to market ...
Level 1- These assets include cash, central bank reserves, and marketable securities. These assets are not subject to any liquidity discount, meaning their entire value is included in the LCR calculation. Level 2A- These assets include securities issued by government-sponsored enterprises and securiti...