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Finance & Banking vocabulary · Regulation & Compliance

Liquidity coverage ratio

Meaning in finance & banking, with examples

nounAdvanced term

In finance & banking, liquidity coverage ratio means: A Basel measure comparing high-quality liquid assets with net cash outflows in a 30-day stress scenario.

In Turkish: likidite karşılama oranı

How it is used

Abbreviated LCR; distinguish the standardized stress calculation from a forecast of normal cash flows.

Example sentences

  1. Higher assumed withdrawals lowered the bank's liquidity coverage ratio.

    Larger stressed net outflows increase the denominator.

  2. The report explained which assets qualified for the liquidity coverage ratio.

    Only assets meeting the framework's criteria enter the stock.

Common collocations

  • liquidity coverage ratio calculation
  • LCR disclosure
  • liquidityHow easily an asset can be turned into cash without losing value, or how much cash and easily sold assets a bank or company has to meet its payments.
  • Basel IIIA set of international banking rules agreed by the Basel Committee after the 2008 global financial crisis. It requires more and better capital and adds liquidity and leverage limits.

More terms: Regulation & Compliance

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This page explains English vocabulary for learners. It is not financial advice.