Bank/Thrift Supervision   |    Capital    |    CFPB    |    Deposit Insurance    |    Interchange    |    Mortgage Finance
Municipal Advisors   |    OCC-OTS Merger   |    Preemption    |    QM - QRM    |    Swaps   |    Volcker Rule    |    Full Topics List
Qualified Mortgage - Qualified Residential Mortgage
Consumer Financial Protection Bureau - CFPB
Bank/Thrift Holding Company Supervision
Deposit Insurance
Mortgage Finance
Municipal Advisors
OCC-OTS Merger
Volcker Rule
Corporate Governance
Financial Stability Oversight Council (FSOC)
Office of Financial Research (OFR)
Systemic Risk
Supervision and Oversight
Payment, Clearing and Settlement
Prudential Supervision
Trust & Securities
Asset-Backed Securities
Resolution Authority

Wednesday, June 22, 2016

Agencies Seek Comment on Strengthening Liquidity Risk Management

The OCC, Federal Reserve and FDIC are seeking comment on a proposed rule that would strengthen the liquidity risk management of large banks and savings associations. The rule would not apply to community banks. The proposed NSFR rule would create a longer-term funding requirement designed to work in concert with the shorter-term liquidity coverage ratio (LCR) rule. While the LCR rule requires large banks and savings associations to hold sufficient high-quality liquid assets to survive a stress scenario lasting 30 days, the proposed NSFR rule would require these institutions to have sources of funding that are stable over a one-year period.

Specifically the rule would require covered banks to calculate both their available and required stable funding and to maintain an amount of available stable funding (ASF) in excess of their required stable funding (RSF) on an ongoing basis. It would also measure ASF by evaluating the stability of the funding source and measure RSF by evaluating the liquidity of its assets, derivatives and off-balance-sheet exposures. Lastly, it would amend certain definitions in the LCR rule that also apply to the proposed rule.

The notice of proposed rulemaking was published in the Federal Register on June 1, 2016, and comments are due on August 5, 2016.

Read more.

No comments:

Post a Comment

Please read our comment policy before making a comment.