1. With reference to Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR), consider the following statements:
1.Net Stable Funding Ratio (NSFR) requires banks to hold sufficient high-quality liquid assets to cover its total net cash outflows over 30 days.
2.Liquidity Coverage Ratio (LCR) requires the available amount of stable funding in banking institutions to exceed the required amount of stable funding for one-year period of extended stress.
Select the statement which is/are incorrect.