Liquidity Coverage Ratios of Large U.S. Banks During and After the COVID-19 Shock

Liquidity Coverage Ratio for U.S. GSIBs (percent)

Large U.S. bank holding companies are subject to a Liquidity Coverage Ratio (LCR) rule that is intended to enhance the short-term resilience of the banking system through better measurement and management of liquidity risk. The authors review the performance of components of the LCR since 2017, with emphasis on the effects of the market turbulence in early 2020, referred to as the COVID-19 shock (Brief no. 24-02).