Liquidity Coverage Ratio (LCR) Explained | FRM Part 2 | Liquidity Risk | CFA Level 2

In this video, we take a look at the Liquidity Coverage Ratio (LCR), a liquidity focused ratio introduced as part of the Basel III reforms. The Liquidity Coverage Ratio measures the bank's probable reaction to a liquidity crisis lasting 30 days, ensuring that it has sufficient high-quality liquid assets to deal with the crisis. The ratio ensures that cash outflows that could possibly occur in the 30 day period are fully covered by ready cash sources.
This video will be helpful for candidates preparing for the FRM Part 2 exam and also for candidates appearing for the CFA Level 2 exam. This topic appears in Book 4 (Liquidity Risk) of FRM Part 2 curriculum. For preparation resources for FRM Part 2 exam, please head over to the course page via the link below:
www.finRGB.com/courses/frm-pa...
www.finRGB.com/courses/frm-pa...

[@fabiosanti7153]

Extremely clear, as usual ... which is key for a video on such a technical topic.

[@28gurvin]

Never ever come across such beautiful explanation of LCR. Excellent to articulate and present a complex concept. Request you to please make a video on NSFR. 👏👏👏👍👍👍

[@finRGB]

Thank you Gurvinder for the appreciation, will make one for NSFR as well.

[@swamivivekananda-cyclonicm8781]

Yes please. NSFR also.

[@swamivivekananda-cyclonicm8781]

Fanstatic explanation. Underrated video and channel.

[@taj-alsiribrahim3865]

Great job. Thank you ..

[@subramaniamdoraswamy2528]

Excellently explained.

[@bonron9921]

Great video and kudos to the person who delivered the tutorial... great voice. By the way quick question -- Does netting in derivatives and repos come into play in LCR calculation?

[@RG-ne6nk]

excellent explanation. crystal clear. You should have atleast a million subscribers.

[@finRGB]

Thank you for the appreciation, @RG-ne6nk

[@mphys5370]

Why not keep cash vs bonds, a place cash over night with a central bank?