The proposed rule:
- Establishes a short-term quantitative minimum LCR that assesses exposures to contingent liquidity events.
- Provides enhanced information about liquidity risk to managers and supervisors, allowing for more effective oversight and supervision of liquidity risk and appropriate supervisory responses.
- Facilitates a more orderly resolution of a covered company in the event of a failure.
- Requires covered companies to maintain an amount of high quality liquid assets, consisting of Level 1, Level 2A, and Level 2B liquid assets, that is not less than 100 percent of the institutions total net cash outflows over a prospective 30-day period.
- Accounts for asset risk and promotes diversification with haircuts and caps.
- Addresses liquidity risk by applying a series of shocks, with prescribed run-off and inflow rates against a banks assets, obligations, and other funding sources.
- Requires covered companies to notify their primary federal regulator when a liquidity shortfall exists (or when the LCR drops below 100 percent).
- Establishes transitions requiring covered companies to comply with a minimum liquidity coverage ratio of 80 percent as of January 1, 2015, 90 percent as of January 1, 2016, and 100 percent thereafter.
FDIC-Supervised Banks (Commercial and Savings)
Chief Executive Officer
Chief Financial Officer
Chief Risk Officer
Interagency Policy Statement on Funding and Liquidity Risk Management
Liquidity Coverage Ratio: Liquidity Risk Measurement, Standards, and Monitoring (PDF Help)
Bobby Bean, Associate Director, or Kyle Hadley, Chief, Exam Support Section, Division of Risk Management Supervision, Capital Markets Branch, at BBean@fdic.gov, KHadley@fdic.gov,or (202) 898-6888
FDIC Financial Institution Letters (FILs) may be accessed from the FDIC's Web site at http://www.fdic.gov/news/news/financial/2013/index.html.
To receive FILs electronically, please visit http://www.fdic.gov/about/subscriptions/index.html.
Paper copies may be obtained through the FDIC's Public Information Center, 3501 Fairfax Drive, E-1002, Arlington, VA 22226 (1-877-275-3342 or 703-562-2200).