Deposit flows shape systemic US banks’ liquidity risk
Top US dealers’ liquidity risk gauges projected a larger amount of deposit outflows over Q2 compared with Q1. This implies that deposits have become a greater source of funding risk over the course of the coronavirus crisis because of clients bulking out their accounts.
Cash outflows, which firms subject to the liquidity coverage ratio (LCR) use to calculate the amount of high-quality liquid assets (HQLA) they need to comply with the rule, increased 6% in aggregate across the eight US global
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