FED Revises Form FR 2052a for Complex Institution Liquidity Monitoring

FED had, on September 12, 2018, temporarily approved certain revisions to the FR 2052a in the context of the Economic Growth, Regulatory Relief, and Consumer Protection (EGRRCP) Act and its related interim final rule amending the treatment of certain municipal obligations that are liquid and readily marketable as high-quality liquid assets (HQLAs) under the Liquidity Coverage Ratio (LCR) rule. Specifically, FED amended the Assets Category Table in Appendix III of the FR 2052a, such that the description of the asset classification code “IG2-Q” is sufficiently inclusive of municipal obligations that may qualify as HQLAs under the LCR rule. On December 28, 2018, FED had published the proposal on the extension, with revision, of the FR 2052a. The comment period for the proposal had expired on February 26, 2019. Since FED did not receive any comments, the revisions will be implemented as proposed.

FR 2052a is used to monitor the overall liquidity profile of certain FED-supervised institutions. These data provide detailed information on the liquidity risks within different business lines. These data serve as part of the supervisory surveillance program of FED in its liquidity risk management area and provide timely information on firm-specific liquidity risks during periods of stress. Additionally, FR 2052a provides detailed information that FED uses to monitor compliance with its Liquidity Coverage Ratio rule (LCR rule) and assists FED with macro-prudential supervision. Reporting frequency is based on the asset size of a firm and whether the firm has been identified as being supervised through the Large Institution Supervision Coordinating Committee of FED. FED consulted with other U.S. regulatory authorities, including OCC and FDIC, in the development of FR 2052a.

Related Links 

• Federal Register Notice
• Form and Instructions
• Supporting Statement

Effective Date: March 31, 2019

Keywords: Americas, US, Banking, FR 2052a, Liquidity Monitoring, HQLA, EGRRCP Act, Reporting, LCR, Liquidity Risk, FED