6. LCR standard applicability (LCR, Basel III)

Definition

It should be stressed that the LCR standard establishes a minimum level of liquidity for internationally active banks. Banks are expected to meet this standard as well as adhere to the Sound Principles. Consistent with the Committee’s capital adequacy standards, national authorities may require higher minimum levels of liquidity. In particular, supervisors should be mindful that the assumptions within the LCR may not capture all market conditions or all periods of stress. Supervisors are therefore free to require additional levels of liquidity to be held, if they deem the LCR does not adequately reflect the liquidity risks that their banks face.

Related terms:

Parent term:

Introduction (LCR, Basel III)

Sibling terms:

1. LCR objective (LCR, Basel III)
2. Importance of liquidity (LCR, Basel III)
3. Sound Principles (LCR, Basel III)
4. Minimum standards for funding liquidity (LCR, Basel III)
5. Jurisdiction coverage of standards' parameters (LCR, Basel III)
7. Complementary monitoring tools (LCR, Basel III)
8. Phase-in arrangement for implementation (LCR, Basel III)
9. Phased introduction of the LCR (LCR, Basel III)
10. LCR schedule (LCR, Basel III)
11. LCR exceptions (LCR, Basel III)
12. NSFR establishment (LCR, Basel III)
13. Document organisation (LCR, Basel III)