Basel III: Liquidity Coverage Ratio (LCR)
Interactive

Basel III: Liquidity Coverage Ratio (LCR)

Intuition Publishing
Updated Sep 25, 2020

The Basel Committee on Banking Supervision (BCBS) has described the Liquidity Coverage Ratio (LCR) as a key reform in strengthening the resilience of the banking sector. We explain how the LCR is determined, including the calculation of high quality liquid assets (numerator) and net cash outflows (denominator). We then describe the implementation issues and timeline associated with this ratio.