Bank of America Corporation Liquidity Coverage Ratio Update for September 30, 2024
At the end of the third quarter of 2024, Bank of America Corporation released its Pillar 3 U.S. Liquidity Coverage Ratio (LCR) disclosures. This report provides a detailed overview of the bank’s liquidity position and the factors influencing its LCR.
Bank of America, headquartered in Charlotte, North Carolina, is a leading financial institution with a global presence. Offering a wide range of financial services to individuals, businesses, and institutional clients, Bank of America plays a crucial role in the banking sector.
The LCR is a key measure of a bank’s ability to withstand short-term liquidity stress. It requires financial institutions to hold high-quality liquid assets that can be quickly converted into cash to meet liquidity needs during a 30-day stress scenario. By maintaining a high LCR, banks enhance their ability to navigate financial and economic challenges.
For Bank of America, the main drivers of its U.S. LCR include changes in high-quality liquid assets (HQLA) and net cash outflows. These outflows encompass various sources such as deposits, commitment facilities, and derivative exposures. As of September 30, 2024, the bank’s average daily U.S. LCR stood at 115.2%, reflecting a solid liquidity position. The increase in the LCR was primarily driven by higher HQLA levels outside of the bank’s entities.
The table below provides a snapshot of Bank of America’s key LCR data for the third quarter of 2024:
– Total eligible HQLA: $610.3 billion
– Average net cash outflows over 30 days: $529 billion
These figures offer insights into the bank’s liquidity reserves and its ability to meet funding obligations in a stress scenario. Maintaining a robust LCR is essential for banks like Bank of America to ensure operational resilience and financial stability.
In conclusion, Bank of America’s Pillar 3 U.S. Liquidity Coverage Ratio disclosures highlight the bank’s commitment to transparency and regulatory compliance. By adhering to rigorous liquidity requirements, Bank of America reinforces its position as a trusted and reliable financial institution in the global market.
