Work out statutory liquidity ratio instantly with clear inputs, formula shown and shareable results.
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.
Statutory liquidity
Required = liabilities × ratio; surplus = holdings - required
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.
Statutory liquidity holdings are interest-bearing securities held by the bank; cash reserves are idle balances at the central bank.
Yes — excess eligible securities can be pledged for central bank liquidity, which is why banks hold a buffer above the minimum.