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APRA requires all banks to maintain a LCR of at least 100% to ensure banks are liquid under stressful market conditions. Many banks have chosen
APRA requires all banks to maintain a LCR of at least 100% to ensure banks are liquid under stressful market conditions. Many banks have chosen to maintain a higher LCR to allow for more liquidity. Consider the following situation: ABC Bank has determined to maintain 130%LCR at all time. It forecasted its cash inflow for the next 30 days under stressful market conditions is $185m and outflow is $370m. How much High Quality Liquid Assets should ABC Bank hold in order to achieve its target LCR? Select one: a. $357.5m b. $240.5m c. $253.5m d. $370.5m e. $487.5m f. $123.5m
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