BANKING
Liquidity Coverage Ratio
Measures a bank's stock of liquid assets relative to modeled 30-day stress outflows.
Formula
LCR = HQLA / 30-day net cash outflows ×100
Variables: HQLA high-quality liquid assets; net cash outflows
What it means
Measures a bank's stock of liquid assets relative to modeled 30-day stress outflows.
Example
HQLA 120 and net stressed outflows 100 imply LCR of 120%.
How to interpret it
This concept should be read together with its market convention, measurement horizon and underlying instrument. BondStats presents it as an analytical reference rather than investment advice; instrument documentation and primary market rules remain authoritative.
Related Formulas
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