LCR Calculator - Liquidity Coverage Ratio

The liquidity coverage ratio is a Basel III metric that asks whether a bank holds enough high-quality liquid assets to cover net cash outflows over a 30-day stress period. Supervisors generally want LCR at or above 100%. Treasury and risk teams watch it because a shortfall can constrain dividends, force asset sales, or trigger a supervisory discussion long before capital ratios look weak. The LCR calculator uses LCR = high-quality liquid assets ÷ total net cash outflows × 100. The liquidity cushion is HQLA minus net outflows. Status is compliant when LCR is at least 100% and below minimum otherwise. With $1,000,000 of HQLA and $800,000 of net outflows, LCR is 125.00% and the cushion is $200,000. With $900,000 of HQLA and $1,000,000 of outflows, LCR is 90.00% and the position is below the common 100% threshold. Use one currency for both sides; the currency field only controls how amounts are formatted. Regulatory LCR is not a two-input ratio in live filings. HQLA is haircut and capped by Level 2 asset limits. Net outflows apply prescribed runoff rates to deposits, wholesale funding, and committed facilities, then subtract capped inflows. The LCR calculator takes the already-computed HQLA and net outflow totals, so it reproduces the division, not the Basel templates. It also ignores the operating requirement that LCR be met on an ongoing basis and reported at a sufficient frequency. Use it to translate a board pack into a single coverage ratio, to explain the 100% minimum, or to test how a drop in HQLA would change the cushion. Do not file it as a regulatory return. Confirm haircuts, deposit categories, and the 75% inflow cap in the applicable Basel or local rule before you treat a number as supervisory LCR. Intraday liquidity, payment-system commitments, and ring-fenced entities can make a consolidated LCR look healthier than any single legal entity. Keep HQLA and outflow totals on the same consolidation level that management actually manages.