liquidity coverage ratio (LCR)

What is liquidity coverage ratio (LCR)?

liquidity coverage ratio (LCR) definition and meaning on Finance terms:
A short-term liquidity requirement which aims to ensure that credit institutions hold sufficient high-quality liquid assets to withstand an acute stress scenario lasting 30 days. It has been implemented in Europe via the Commission Delegated Regulation (EU) 2015/61. The LCR is calculated in accordance with the following formula: liquidity buffer

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