Which one of the following statements is incorrect regarding the Liquidity Coverage Ratio (LCR)?
1
It is the minimum required high-quality liquid assets (HQLA) that the banks must hold.
2
Purpose is to allow them to survive a liquidity stress for 30 days.
3
It was introduced under Basel III to improve a bank’s short-term resilience to liquidity shocks.
4
RBI has declared that the SLR-eligible assets held by the Banks can't be considered as HQLAs.
5
None of the above