Bank liquidity calculator
Work out a bank's liquidity coverage ratio (LCR) against the Basel III 100% minimum, its loan-to-deposit ratio, and how much of its deposits it could pay out from liquid assets in a bank run. Free, no sign-up, nothing leaves your browser.
Use any unit, such as millions, as long as every box uses the same one. The starting figures are an example, not a real bank. Real outflow and inflow figures come from rates set by the regulator for each type of funding.
Why banks need liquid assets
Banks lend out most of the money deposited with them, so even a healthy bank can't pay everyone back at once. To cope with a sudden wave of withdrawals, banks keep a stock of assets they can turn into cash quickly, such as central bank reserves and government bonds.
The liquidity coverage ratio
Basel III, the international banking standard, asks large banks to hold enough high-quality liquid assets to cover their expected net cash outflows over 30 days of stress: a liquidity coverage ratio of at least 100%. Expected inflows can only count for up to 75% of outflows, so a bank can't rely on inflows alone. National regulators, such as the Prudential Regulation Authority in the UK, apply the rules.
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