Liquidity Coverage Ratio Calculator

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Finance

Calculate Liquidity Coverage Ratio (LCR) for banking compliance. Measures a bank's ability to meet short-term liquidity needs under stress scenarios. Regulatory requirement: minimum 100% under Basel III rules.

Formula

LCR = (High-Quality Liquid Assets ÷ Net Cash Outflows) × 100%; Must be ≥100%
  • HQLA: Cash, govt securities, high-rated corporate bonds
  • 30-day stressed scenario
  • Basel III regulatory requirement

Bank Liquidity Stress Test

Inputs
  • High-Quality Liquid Assets ($M): 50 $M
  • Expected Deposit Outflow ($M): 30 $M
  • Other Cash Outflows ($M): 10 $M
  • Expected Cash Inflows ($M): 0 $M

$50M HQLA ÷ $40M net outflows = 125% LCR. Bank is compliant.

Frequently asked questions

What is a good LCR?
100-125% is compliant. 125%+ is strong. Below 100% triggers regulatory action.