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      Question

      Under Basel III, the Liquidity Coverage Ratio (LCR)

      requires banks to hold high-quality liquid assets (HQLA) to meet liquidity needs for how many days in an acute stress scenario?
      A 15 days Correct Answer Incorrect Answer
      B 30 days Correct Answer Incorrect Answer
      C 60 days Correct Answer Incorrect Answer
      D 90 days Correct Answer Incorrect Answer
      E 120 days Correct Answer Incorrect Answer

      Solution

      The Liquidity Coverage Ratio (LCR) under Basel III mandates that banks should hold sufficient high-quality liquid assets (HQLA) to survive an acute liquidity stress scenario lasting for 30 days . This ensures that banks can meet their liquidity needs in times of crisis without resorting to emergency measures.

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