Master of Science in Islamic Finance
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Basel III requiements for Liquidity Coverage Ratio and Islamic Banks' Challenges & opportunities
In 2007,the financial crisis revealed that some banks were complying well with the Basel Il "capital adequacy ratio", but faced a severe shortage of liquidity. In 2013, the Basel Committee of Banking Supervion (BBS) responded to thebanks challenges by introducing the "Basel IlI, Liquidity Coverage Ratio (LCR)" as an indicator of the short-term resilience of a bank's liquidity risk profile. In 2015, the IFSB introduced an LCR tailored to the needs and nature of Islamic banks. |