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Explanation:
The Liquidity Coverage ratio is equivalent to:
Q.3952 The following table represents a section extracted from ABC bank’s balance sheet. Use the provided data to determine the Liquidity Coverage Ratio of the bank for 2018 and 2019, respectively.
| Description | 2018 | 2019 |
|---|---|---|
| High Liquid assets | 2100 | 1458 |
| Average monthly withdrawals | 1200 | 2458 |
| Expected monthly outflows in a stressed scenario | 1600 | 1700 |
A
126% and 145 %
B
131% and 86%
C
80% and 124%
D
129% and 134%
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