Bank of Thailand: LCR horizon should be a maximum of seven days

Thailand floods

The current horizon period for the liquidity coverage ratio (LCR) in Basel III is too long and a seven-day maximum period is a more accurate reflection of the conditions experienced during a bank run, according to Krirk Vanikkul, deputy governor of the Bank of Thailand. Under the current standards for the LCR by the Basel Committee on Banking Supervision, banks must have enough assets to cover a 30-day stressed period. However, Vanikkul argued no bank run would last that long, and an ailing i