# liquidity coverage ratio (LCR)

- Canonical URL: https://www.gerhardmerk.de/liquidity-coverage-ratio-lcr
- Post ID: 605574
- Modified: 2026-09-07T19:47:30+00:00
- Language: en

## Definition

The liquidity coverage ratio (LCR) is a prudential measure of a bank’s short-term liquidity resilience. It compares readily monetisable liquid assets with the cash shortfall expected over a 30-day period of stressed conditions. Expressed as a percentage, the ratio is calculated by dividing the available liquidity buffer by projected net outflows. A value of 100% means that the buffer matches the expected outflows; under the applicable European prudential framework, institutions must generally meet at least this level. In the European Union, the requirement is laid down in Commission Delegated Regulation (EU) 2015/61.

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