WHat is the difference bewteen NSFR and LCR:
- Time Horizon: LCR (30 days) vs. NSFR (1 year)
- Focus: LCR (Short-term liquidity stresses) vs. NSFR (Longer-term funding stability)
- Assets Covered: LCR (High-Quality Liquid Assets - HQLA) vs. NSFR (Broader range of stable funding sources)
Both the LCR and NSFR are essential components of the Basel III framework for managing liquidity risk in the banking sector.