A treasury policy requires a minimum liquidity coverage ratio (LCR) of 100%. If high-quality liquid assets (HQLA) total $50M and net cash outflows over 30 days are $60M, what action is required?
-
A
No action; the LCR exceeds 100%
-
B
Increase HQLA by at least $10M to meet the 100% threshold
-
C
Reduce net outflows by refinancing all debt immediately
-
D
Reclassify receivables as HQLA to bridge the gap