liquidity-lcr

To calculate the Basel III Liquidity Coverage Ratio (LCR), you divide High-Quality Liquid Assets (HQLA) by total net cash outflows over a 30-day stress period. This skill computes the ratio by classifying HQLA, applying haircuts, and modeling stressed inflows and outflows to deliver a compliant LCR report.

The 40% cap on Level 2 assets is a Basel III HQLA classification rule that limits the amount of Level 2A and Level 2B assets a bank can include in its liquidity buffer. This skill automatically enforces the Level 2 cap and applies appropriate haircuts to ensure accurate LCR readiness.

Projecting stressed cash outflows and inflows for LCR reporting involves modeling retail and wholesale components, operational deposits, and recoveries over a 30-day horizon. This skill processes your cash flow projections and applies the 75% inflow cap to generate a structured regulatory report.

Yes, this LCR calculation tool explicitly applies the 75% inflow cap required by Basel III regulations. It limits total cash inflows to 75% of total outflows, ensuring your liquidity buffer calculation remains compliant with regulatory standards.

The best way to monitor liquidity buffer adequacy during stress scenarios is to calculate the LCR using HQLA classifications and 30-day stressed cash flow assumptions. This skill provides a formatted LCR output suitable for governance, audit, and regulatory-aligned reporting.