Equity should be included in LCR – Risk.net poll

liquidity ratio

Equity should be included as an eligible asset in the liquidity coverage ratio (LCR) under Basel III, according to respondents in a Risk.net poll conducted in June.

Sixty-one per cent of respondents to the poll believe equity should be included, with 31% opposed to the idea and 3% unsure.

Under the LCR, banks must have enough high-quality liquid assets to cover expected net cash outflows over a 30-day period of stress. At least 60% of the liquidity buffer must comprise so-called level 1 assets –

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