This is a ratio all banks must comply with. Eligibility is limited as follows:

1. a. Account balances at the Central Bank
2. b. Physical cash at the bank
3. c. Central Bank CDs
4. d. UAE Federal Government bonds and sukuks
5. e. Reserve requirements
6. f. UAE local government and PSE’s publicly traded debt securities that are assigned 0% credit risk weighting under Basel II Standardized approach (limited to a maximum of 20% of eligible liquid assets)
7. g. Foreign, Sovereign debt instruments or instruments issued by their central banks, also multilateral development banks all of which receive 0% credit risk weighting under Basel II Standardized approach (limited to a maximum of 15% of eligible liquid assets)

Banks must hold an amount equivalent to at least 10% (or some other percentage as set by the Central Bank) of their total on balance sheet liabilities at all times in the above assets. This ratio will be subject to upward revisions from time to time either as a result of Central Bank policy or as a result of a recalibration exercise when assessing the impact of the LCR.