Aggregate LCR of systemic US banks edged lower in 2019
Net cash outflows increased at a faster pace than HQLA last year
The ratio of high-quality liquid assets to expected cash outflows in a crisis across the eight systemically important US banks fell over the course of 2019, Risk Quantum analysis shows.
Aggregate HQLA averaged $2.37 trillion in Q4 2019 across the top lenders, up 4% on Q4 2018. HQLA forms the numerator of the liquidity coverage ratio (LCR), a key barometer of bank liquidity risk.
Combined net cash outflows, however, increased at faster pace, by 5% to $2 trillion. These make up the denominator
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