2025-06-21 | 31731

Implementation of the Liquidity Coverage Ratio

The banking regulatory authority requires financial institutions to implement the Liquidity Coverage Ratio (LCR) as part of the Basel II/III framework. Banks must maintain a minimum stock of unencumbered high-quality liquid assets sufficient to cover projected net cash outflows during a severe 30-day stress scenario. This mandate strengthens short-term liquidity resilience and reduces systemic risk across the banking sector.

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Banking Sector , Basel II/III Implementation Implementation of the Liquidity Coverage Ratio Share