ACI Dealing Certificate (#428)

The Liquidity Coverage Ratio (LCR) in Basel III:

is a new rule that compares liquid asset levels in banks to their available equity capital
spells out a modernized system for calculating the required minimum reserve that banks must hold at the central bank
compares liquid and reliably liquidating assets to expected cash outflows from specified run-off rates for various liability classes under a short-term stress scenario
tied directly into the internal ratings-based approach for determining the liquidity of credit-counterparties