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Implementation of the Basel III Liquidity Requirements in the Americas

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Within the Basel III framework, the Basel Committee on Banking Supervision has developed two standards for supervisors to limit liquidity risk. Although they have different objectives, they are both necessary to supervise this risk. The first standard, the Liquidity Coverage Ratio (LCR), is intended to promote banks’ resilience against potential liquidity disruptions over a 30-day horizon with sufficient high quality liquid resources.

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