News Analysis: The Bank in Luxembourg: Banque et Caisse d’Epargne de l’Etat performed very well in its being reviewed by European Banking Authorities. It has a 16.3% Liquidity Ratio, well above a required minimum of 9% as derived from “Basel Accord” Provisions.
The ‘Liquidity Coverage Ratio’ is set up so Financial Institutions can survive “Tremors” in short-timed liquidity situations. By holding a certain percentage of High-Liquidity Assets such as Treasury Bonds or Cash (the equivalent of or greater than the Bank’s Net Cash over thirty days time), a Bank is deemed to be “Less Stressed” since it has a minimum of 100% containment.
The effects to possible Borrowers at a Bank is that it has less money available for short term loans.
‘BCEE’ performs with a Professionalism much in consonance with the Economic Awareness And Good Practices of other Monetary Elements in Luxembourg (which is of International Financial Renown).
Reality.
Reference: http://www.wort.lu/en/view/luxembourg-s-bcee-a-model-student-52b00f6ae4b006edcdac8714
