The Liquidity Coverage Ratio Proposal

Key points for implementation

The Federal Reserve, FDIC and OCC released their proposed Liquidity Coverage Ratio (LCR) for the US in late October. Since then, Oliver Wyman has had wide ranging conversations on both the interpretive and operational challenges of the draft, and has guided some or our clients as they seek to calculate preliminary ratios.

In this Point of View we introduce the LCR and highlight four key areas of operational challenge that will be faced by banks as they prepare to calculate the ratio by January 1, 2015. The article highlights a set of key leverage points for most banks to consider and provides a high-level framework for institutions to prioritize data and analytical work in advance of the 2015 deadline.   

The Liquidity Coverage Ratio Proposal