Asia’s LCR challenge

Asia’s LCR challenge

elbert-pattijn

Much of the debate on Basel III has focused on the new liquidity rules – and nowhere more so than Asia, where a shortage of eligible liquid assets in many markets means local banks may struggle to meet the requirements. A particular concern is the liquidity coverage ratio (LCR), which requires banks to hold enough high-quality liquid assets – for the most part, government bonds and cash – to survive a 30-day period of acute stress. Despite two rounds of compromise – th