Yale School of Management

Posts by Liquidity Regulation

Easing Liquidity Regulations to Counter COVID-19

April 27, 2020
Many countries are easing liquidity regulations to help banks get cash to their customers and to prevent liquidity shortages from spreading across financial markets. Countries are addressing liquidity shortages using two main tools: the liquidity coverage ratio (LCR), which most developed countries implemented in recent years as part of the Basel III agreements, and the more traditional reserve requirement ratio. Continue reading “Easing Liquidity Regulations to Counter COVID-19”