Statutory Liquidity Ratio Calculator

Work out statutory liquidity ratio instantly with clear inputs, formula shown and shareable results.

About Statutory Liquidity Ratio Calculator

The statutory liquidity ratio requires a minimum holding of approved securities against deposits. Unlike the cash reserve it earns interest, but it still constrains how much can be lent and channels funding to government paper.

Formula

Statutory liquidity

Required = liabilities × ratio; surplus = holdings - required

Worked example

With the default values below, Statutory Liquidity Ratio Calculator returns Surplus Or Shortfall of -$8,000,000.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Net Demand And Time Liabilitiesminimum 0: 500,000,000
Statutory Liquidity Ratioaccepts 0–40 %: 18 %
Eligible Securities Heldminimum 0: 82,000,000

Results

Surplus Or Shortfall: -$8,000,000.00
Securities Required: $90,000,000.00
Current Ratio Held: 16.400%
Compliance Status: Shortfall — additional eligible securities needed

Step by step

1Values used
2Statutory liquidity
3Surplus Or Shortfall= -8,000,000.00
4Securities Required= 90,000,000.00
5Current Ratio Held= 16.400
6Compliance Status= Shortfall — additional eligible securities needed

Assumptions and limits

The result is derived only from the 3 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
Figures are rounded for display to 3 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
Figures are estimates based on the inputs given. Bank charges, regulatory minima and market rates change and differ between institutions and jurisdictions. This is not financial advice — confirm with your bank or treasury policy.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Figures are estimates based on the inputs given. Bank charges, regulatory minima and market rates change and differ between institutions and jurisdictions. This is not financial advice — confirm with your bank or treasury policy.

Frequently Asked Questions

How does it differ from the cash reserve ratio?

Statutory liquidity holdings are interest-bearing securities held by the bank; cash reserves are idle balances at the central bank.

Can surplus holdings be used?

Yes — excess eligible securities can be pledged for central bank liquidity, which is why banks hold a buffer above the minimum.