4.4 Modified Liquidity Coverage Ratio Calculation

The modified LCR calculation is prescribed by US Federal Reserve for smaller banks, which requires the stock of HQLA to be sufficient to cover net cash outflows over a liquidity horizon of 30 days. These banks are required to compute a less stringent LCR, because of their relatively small size and lower complexity. The inflow and outflow rates for such banks are 70% of those prescribed under the LCR approach.