Liquidity and Funding
Liquidity Coverage Ratio: Frequently Asked Questions
The Office of the Comptroller of the Currency (OCC), the Board of Governors of the Federal Reserve System (Board), and the Federal Deposit Insurance Corporation (FDIC) (collectively, the agencies) adopted a final Liquidity Coverage Ratio rule1 (LCR rule) in September 2014 that implements a quantitative liquidity requirement consistent with the standard established by the Basel Committee on Banking Supervision.2 These frequently asked questions (FAQs) were prepared by the staffs of the agencies based on questions that have been received since the LCR rule was published regarding how the LCR rule applies in specific situations.
The responses to the questions are intended to provide guidance about the requirements of the LCR rule, based upon the facts and circumstances presented in the questions. These FAQs do not represent new rules or regulations, nor do they amend any of the existing requirements of the LCR rule.
For purposes of these FAQs, section numbers refer to each agency’s respective regulation. For example, section 32 refers to 12 CFR 50.32 for OCC-supervised institutions, 12 CFR 249.32 for Board-supervised institutions, and 12 CFR 329.32 for FDIC-supervised institutions.
- Outflow Amount for Liquidity Facilities to Public Sector Entities (PSEs) in Connection with Variable Rate Demand Note (VRDN) Programs
- Outflow Amounts for Trusts
- Maturity Determination for Instruments with Remote Contingency Call Options
- Outflow Amounts for Trust Ledger Deposit Account (TLDA) Programs and Custody Assets
- Treatment of Multicurrency Deposit Balances
- Treatment of Inflows from Secured Loans to Retail Clients with Open Maturities
- Securities Lending as a Form of Evidence of Ability to Monetize
- Foreign Withdrawable Reserves
 See 79 Fed. Reg. 61440 (October 10, 2014). The LCR rule is codified at 12 CFR part 50 (OCC), 12 CFR part 249 (Board), and 12 CFR part 329 (FDIC).