The formulas used in the calculations are:
\[ \text{highly liquid assets} = \text{cash and cash equivalents} + \text{marketable securities} \]
\[ \text{LCR} = \left( \frac{\text{highly liquid assets}}{\text{expected 30-days cash outflows}} \right) \times 100 \]
This calculator computes the Liquidity Coverage Ratio (LCR) based on the input values of cash and cash equivalents, marketable securities, and expected 30-days cash outflows. The LCR is a measure used to ensure that a financial institution has enough highly liquid assets to cover its expected cash outflows over a 30-day period in a stress scenario.
Let's assume the following:
Calculate the highly liquid assets:
\[ \text{highly liquid assets} = 1,000,000 + 750,000 = 1,750,000 \]
Calculate the LCR:
\[ \text{LCR} = \left( \frac{1,750,000}{1,500,000} \right) \times 100 = 116.67\% \]
Therefore, the Liquidity Coverage Ratio (LCR) for this example is 116.67%.
