By the end of 2016, the Liquidity Coverage Ratio (LCR) was 130% on average in an international sample of around 90 large banks (CGFS 2018). More than 90% of those banks had already met the regulatory requirement of the LCR set at 100%. Banks’ long-term resilience against liquidity shocks has also substantially improved.
In particular, the Net Stable Funding Ratio (NSFR) has increased significantly from 43% in 2012 to 115% in 2016 (CGFS2018).5 Notwithstanding higher levels of capital in the banking sector, global debt levels remain elevated. At 144% of GDP, private non-financial sector debt has been higher in late 2017 than its pre-crisis level of 125% in 2007 (BIS 2018).