Legal basis, background, and next steps. The LCR is applicable in the EU since 1 October 2015, and its full implementation at a minimum of 100% became effective in January 2018. This put an end to any national provisions in the area of liquidity requirements laid down in the Capital Requirements Regulation (CRR).

When was the LCR introduced?

The LCR was introduced as part of the Basel III reforms following the 2008 global financial crisis and was finalised by the Basel Committee on Banking Supervision in January 2013. Click here for articles on the liquidity coverage ratio.

Why was LCR introduced?

Part 1: The Liquidity Coverage Ratio

The Committee has developed the LCR to promote the short-term resilience of the liquidity risk profile of banks by ensuring that they have sufficient HQLA to survive a significant stress scenario lasting 30 calendar days.