The liquidity coverage ratio (LCR) that bear on banks aim to ensure that banks maintain sufficient levels of liquid assets to meet liquidity outflows during a period of market stress. The net stable funding ratio (NSFR) regulations aim to mitigate funding risk by reducing over-reliance on short-term wholesale funding. Capitec has the highest LCR and NSFR among South African banks.
Footnote
This post presents estimates of the cost of meeting prudential regulations.
