3.1 Liquidity Coverage Ratio (LCR)

Liquidity Coverage Ratio (LCR): Liquidity coverage ratio addresses the short-term liquidity needs of a bank, or financial institution during a stress situation. It estimates whether the stock of high quality liquid assets is sufficient to cover the net cash outflows under stress situations over a specified future period, in general, lasting 30 calendar days (or LCR horizon). LCR is calculated at the legal entity level, on a standalone and consolidated basis.