Office Of Financial Research Update - "The Difficult Business Of Measuring Banks’ Liquidity: Understanding The Liquidity Coverage Ratio"

The OFR released a working paper today entitled, "The Difficult Business of Measuring Banks’ Liquidity: Understanding the Liquidity Coverage Ratio" and an accompanying blog by Greg Feldberg, OFR Acting Deputy Director for Research and Analysis. The paper uses a series of increasingly complex examples to demonstrate issues in analyzing the Liquidity Coverage Ratio, a new metric bank regulators adopted after the financial crisis to help ensure banks maintain enough liquid assets to cover their financial obligations during times of stress.

The working paper is posted on the OFR website at: http://financialresearch.gov/working-papers/

The blog is posted at: http://financialresearch.gov/from-the-management-team/

The OFR home page is at: http://financialresearch.gov