The Liquidity Coverage Ratio: The Need for Further Complementary Ratios?

Bank for International Settlements Publications, October 2013, Forthcoming

6 Pages Posted: 5 Aug 2013

See all articles by Marianne Ojo D Delaney PhD

Marianne Ojo D Delaney PhD

American Accounting Association; Centre for Innovation and Sustainable Development (CISD); Centre for Innovation and Sustainable Development (CISD)

Date Written: August 3, 2013

Abstract

This paper considers components of the Liquidity Coverage Ratio – as well as certain prevailing gaps which may necessitate the introduction of a complementary liquidity ratio. The definitions and objectives accorded to the Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR) highlight the focus which is accorded to time horizons for funding bank operations. A ratio which would focus on the rate of liquidity transformations and which could also serve as a complementary metric given certain gaps which currently prevail with the Liquidity Coverage Ratio, as well as existing gaps with other complementary liquidity monitoring tools, is proposed.

Keywords: Liquidity Coverage Ratio (LCR), Net Stable Funding Ratio (NSFR), High Quality Liquid Assets (HQLA), liquidity monitoring tools, objectivity, comparability, transparency, disclosure

Suggested Citation

Ojo D Delaney PhD, Marianne, The Liquidity Coverage Ratio: The Need for Further Complementary Ratios? (August 3, 2013). Bank for International Settlements Publications, October 2013, Forthcoming, Available at SSRN: https://ssrn.com/abstract=2305676

Marianne Ojo D Delaney PhD (Contact Author)

American Accounting Association ( email )

5717 Bessie Drive
Sarasota, FL 34233-2399
United States

Centre for Innovation and Sustainable Development (CISD) ( email )

United States

Centre for Innovation and Sustainable Development (CISD) ( email )

United States

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
131
Abstract Views
924
Rank
392,634
PlumX Metrics