The Full Form of LCR is Liquidity coverage ratio.

Liquidity ratios are a class of financial metrics used to determine a company’s ability to pay off current debt obligations without raising external capital. Liquidity ratios measure a company’s ability to pay debt obligations and its margin of safety through the calculation of metrics including the current ratio, quick ratio, and operating cash flow ratio. Current liabilities are analyzed in relation to liquid assets to evaluate the coverage of short-term debts in an emergency.

The liquidity coverage ratio is the requirement whereby banks must hold an amount of high-quality liquid assets that’s enough to fund cash outflows for 30 days.1 Liquidity ratios are similar to the LCR in that they measure a company’s ability to meet its short-term financial obligations.