For example, since 2013, Canadian banks have been required to hold at least 7 per cent of Common Equity Tier 1 capital, compared with the Basel requirement to hold 4.5 per cent by 2015. OSFI has also required full implementation of the Liquidity Coverage Ratio (LCR) beginning in 2015, rather than the 2019 requirement under Basel III.
In the extreme, these resources could be supplemented by conditional loans from the International Monetary Fund (IMF). 2  For present purposes, it is important to distinguish between funding and market liquidity. Market liquidity is the ability to trade an asset or financial instrument at short notice with little impact on its price.