....The LCR aims to prevent a repeat of the kind of distress we saw in the aftermath of the collapse of Lehman Brothers, by making banks hold an adequate stock of unencumbered, high-quality liquid assets that can be readily converted into cash to meet sudden liquidity needs to ride out a 30-calendar-day liquidity stress scenario. It is somewhat akin to our statutory liquidity ratio (SLR) for which we were often derided in the past. It must be clarified, however, that SLR in the Indian context is also a way of ensuring a ready source of funds to meet the government's seemingly insatiable appetite. ..............
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