Bank of Thailand: LCR horizon should be a maximum of seven days

Experience of the Asian financial crisis leads Bank of Thailand's deputy governor to question the LCR parameters

Thailand floods

The current horizon period for the liquidity coverage ratio (LCR) in Basel III is too long and a seven-day maximum period is a more accurate reflection of the conditions experienced during a bank run, according to Krirk Vanikkul, deputy governor of the Bank of Thailand.

Under the current standards for the LCR by the Basel Committee on Banking Supervision, banks must have enough assets to cover a 30-day stressed period. However, Vanikkul argued no bank run would last that long, and an ailing

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here