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How to Calculate a Bank's Liquidity Position

By Motley Fool Staff – Updated Apr 30, 2025 at 8:30 PM

Key Points

  • Bank liquidity is crucial; lack of it can lead to a bank's quick failure.
  • LCR must be 100% or higher, calculated by dividing HQLA by net cash outflow.
  • Investors can assess bank stability by checking the LCR in its quarterly reports.
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