General Information & Client Services
  • Americas: +1.212.553.1653
  • Asia: +852.3551.3077
  • China: +86.10.6319.6580
  • EMEA: +44.20.7772.5454
  • Japan: +81.3.5408.4100
Media Relations
  • New York: +1.212.553.0376
  • London: +44.20.7772.5456
  • Hong Kong: +852.3758.1350
  • Tokyo: +813.5408.4110
  • Sydney: +61.2.9270.8141
  • Mexico City: +001.888.779.5833
  • Buenos Aires: +0800.666.3506
  • São Paulo: +0800.891.2518
August 22, 2018

US Agencies (FDIC, FED, and OCC) issued an interim final rule amending the liquidity rules to treat certain eligible municipal securities as high-quality liquid assets (HQLAs), as required by the Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018 (EGRRCP Act). This interim final rule takes effect on publication in the Federal Register and comments will be accepted for 30 days after its publication in the Federal Register.

The interim final rule amends the agencies' liquidity coverage ratio (LCR) rule to treat liquid and readily-marketable, investment-grade municipal obligations as HQLAs. The EGRRCP Act requires the agencies to treat a municipal obligation as a HQLA under their liquidity coverage ratio rules if that obligation is considered “liquid and readily-marketable” and “investment grade.” Pursuant to Section 403 of the EGRRCP Act, the interim final rule amends the LCR rule as follows:

  • Adds municipal obligations that are liquid and readily-marketable and investment grade under 12 CFR part 1, as of the LCR calculation date, to the list of assets eligible for treatment as level 2B liquid assets
  • Adds a definition for "municipal obligations," which means an obligation of (1) a state or any political subdivision thereof or (2) any agency or instrumentality of a state or any political subdivision thereof
  • Adds a reference to the FED's definition of liquid and readily-marketable in 12 CFR 249.3 to the definition of "liquid and readily-marketable"

The LCR rule and this interim final rule are applicable to depository institutions with USD 10 billion or more in total consolidated assets that are consolidated subsidiaries of internationally active banking organizations, with total consolidated assets of USD 250 billion or more or that have USD 10 billion or more in foreign exposures.

 

Related Links

Comment Due Date: FR + 30 Days

Effective Date: FR Date

Keywords: Americas, US, Banking, HQLA, EGRRCP Act, LCR, Municipal Securities, US Agencies

Related Insights
News

US Agencies Propose Rule on Appraisals for Real Estate Transactions

US Agencies (FDIC, FED, and OCC) proposed a rule to increase the threshold level at or below which appraisals would not be required for the residential real estate transactions from USD 250,000 to USD 400,000. Comments will be accepted for 60 days from publication in the Federal Register.

December 07, 2018 WebPage Regulatory News
News

EBA Single Rulebook Q&A: First Update for December 2018

This week one answer was published as part of the Single Rulebook Questions and Answers (Q&A).

December 07, 2018 WebPage Regulatory News
News

FED Updates Reporting Form and Instructions for FR Y-14Q

FED published the updated reporting form FR Y-14Q for Capital Assessment and Stress Testing, along with the associated instructions.

December 06, 2018 WebPage Regulatory News
News

PRA Finalizes Policy on Minor Amendments to Regulatory Reporting

PRA published the policy statement PS30/18, which contains the final policy following a consultation (CP16/18) on certain amendments to regulatory reporting.

December 05, 2018 WebPage Regulatory News
News

GM of BIS Examines Regulatory Implications of Big Tech in Finance

Agustín Carstens, the General Manager (GM) of BIS, during the keynote address at the FT Banking Summit in London, spoke about new challenges and policy implications of big tech in finance.

December 05, 2018 WebPage Regulatory News
News

European Council Endorses Package on CRD 5, CRR 2, BRRD 2, and SRMR 2

European Council endorsed the agreement achieved between the presidency and the Parliament on the key measures of a comprehensive legislative package aimed at reducing risks in the banking sector in EU.

December 04, 2018 WebPage Regulatory News
News

BCBS Report Examines Cyber Resilience Practices Across Jurisdictions

BCBS published a report that identifies, describes, and compares the range of observed bank, regulatory, and supervisory cyber-resilience practices across jurisdictions.

December 04, 2018 WebPage Regulatory News
News

ACPR Publishes Version 2.8.1 of the CRD IV Taxonomy

ACPR notified that version 2.8.1 of the Capital Requirements Directive (CRD) IV Data Point Model taxonomy and version 2.1.0 of the Anti-Money Laundering and Terrorist Financing (LCB-FT) taxonomy have been made available.

December 04, 2018 WebPage Regulatory News
News

EIOPA Publishes Q&A on Regulations and Guidelines

EIOPA published new sets of questions and answers (Q&A) on guidelines, implementing regulations, and delegated regulations applicable to insurers in Europe.

December 03, 2018 WebPage Regulatory News
News

ESMA Registers A.M. Best (EU) Rating Services as Credit Rating Agency

ESMA, the direct supervisor of credit rating agencies (CRAs) in EU, has registered A.M. Best (EU) Rating Services B.V. as a CRA under the CRA Regulation, with effect from December 03, 2018.

December 03, 2018 WebPage Regulatory News
RESULTS 1 - 10 OF 2310