Twelve of 20 major Asia-Pacific banks reported quarter-over-quarter decline in liquidity coverage ratios in the second quarter, according to a sample by S&P Global Market Intelligence.
In the three months ended June 30, Norinchukin Bank posted the largest drop of the ratio by 58.5 percentage points from the previous quarter. But the Japanese lender's liquidity coverage ratio was still the highest in the sample, standing at 319.8% as of end-June.
China CITIC Bank Corp. Ltd. reported the biggest improvement in the ratio, up 22.7 percentage points at 132.2%.
In the sample, China-based Ping An Bank Co. Ltd. and Shanghai Pudong Development Bank Co. Ltd. reported the lowest ratios at 109.3% and 110.0%, respectively.
The liquidity coverage ratio measures a bank's ability to withstand shocks due to cash outflows. It is calculated by dividing a lender's stock of high-quality liquid assets by its total net cash outflows over a period of time.
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