Half of the 20 largest Asia-Pacific banks reported quarter-over-quarter improvement in their liquidity coverage ratios for the third quarter, with Japan's Norinchukin Bank leading the group with the largest increase, according to data from S&P Global Market Intelligence.

Liquidity coverage ratio measures banks' ability to withstand cash outflows, and is calculated by dividing a firm's stock of high-quality liquid assets by total net cash outflows over a certain period.

Norinchukin Bank, with a ratio of 402.0%, reported the largest improvement of 82.20 percentage points for the quarter, while China CITIC Bank Corp. Ltd. reported the steepest decline in its ratio for the quarter, shedding 14.82 percentage points.

Norinchukin Bank also led the group in terms of having the highest ratio, while Postal Savings Bank of China Co. Ltd. ranked second on the list with a ratio of 211.38%. On the other hand, China's Hua Xia Bank Co. Ltd. and Shanghai Pudong Development Bank Co. Ltd. stood at the bottom of the list, with ratios of 114.57% and 115.63%, respectively.