BANKING AFFAIRS

BANKING GENERAL KNOWLEDGE

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
What is the full form of LSR in Banking and Finance?
A
Liquidity Service Ratio
B
Liquidity System Ratio
C
Liquidity Stress Ranking
D
Liquidity Stress Ratio
Explanation: 

Detailed explanation-1: -LSR stands for Liquidity Stress Ratio (LSR). LSR is the ratio of potential money outflow to the actual money inflow during a certain period. LSR calculates the liquidity shortfall, a mismatch in the bank’s balance sheets of a Bank Holding Company (BHC) during the financial crisis.

Detailed explanation-2: -A Loan to Security Ratio (LSR) is a gearing level percentage that identifies your level of loan liability in comparison to your loan security value, and is commonly used to assess the performance of your portfolio.

Detailed explanation-3: -LCR, liquidity coverage ratio The LCR is the percentage resulting from dividing the bank’s stock of high-quality assets by the estimated total net cash outflows over a 30 calendar day stress scenario.

Detailed explanation-4: -The LSR full form in banking is a Loan to Security Ratio (LSR), which measures your amount of loan debt in relation to the value of your loan security, is a gearing level percentage that is frequently used to evaluate the performance of your portfolio.

Detailed explanation-5: -While the SLR is a constraint on the size of a bank’s balance sheet, the LCR is a constraint on its composition.

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