LSR is a mismatch on bank’s balance sheets. What is the meaning of � – InterviewSolution

1.	LSR is a mismatch on bank’s balance sheets. What is the meaning of ‘L’ in ‘LSR’?1). Least2). Liquidity3). Legal4). Low
Answer» 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. LSR is used to describe the liquidity condition of the banking sector and may offer an early warning signal of a liquidity or financial crisis.

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