United States Government Publishing Office publisher pbl distributor dst United States National Archives and Records Administration Office of the Federal Register author aut Government Organization text government publication eng FR Regulatory Information 2016_register executive 2016-04-09 article Rules and Regulations D09002ee1c7f653db D09002ee1c7f654b1 United States Federal Reserve System originator org United States Government Agency or Subagency The Board of Governors of the Federal Reserve System (Board) is adopting a final rule that amends the Board's liquidity coverage ratio rule and modified liquidity coverage ratio rule (together, LCR rule) to include certain U.S. municipal securities as high-quality liquid assets (HQLA). This final rule includes as level 2B liquid assets under the LCR rule general obligation securities of a public sector entity (i.e., securities backed by the full faith and credit of a U.S. state or municipality) that meet similar criteria as corporate debt securities that are included as level 2B liquid assets, subject to limitations that are intended to address the structure of the U.S. municipal securities market. The final rule applies to all Board- regulated institutions that are subject to the LCR rule: Bank holding companies, certain savings and loan holding companies, and state member banks that, in each case, have $250 billion or more in total consolidated assets or $10 billion or more in on-balance sheet foreign exposure; state member banks with $10 billion or more in total consolidated assets that are consolidated subsidiaries of bank holding companies described in the first instance; nonbank financial companies designated by the Financial Stability Oversight Council for Board supervision to which the Board has applied the LCR rule by separate rule or order; and bank holding companies and certain savings and loan holding companies, in each case with $50 billion or more in total consolidated assets, but that do not meet the thresholds described in the first through third instances, which are subject to the Board's modified liquidity coverage ratio rule. 81 FR 21223 https://www.govinfo.gov/app/details/FR-2016-04-11/2016-07716 2016-07716 fr11ap16-1 RIN 7100 AE32 6210-01-P Docket No. R-1514 Regulation WW https://www.govinfo.gov/app/details/FR-2016-04-11/2016-07716 https://www.govinfo.gov/content/pkg/FR-2016-04-11/html/2016-07716.htm https://www.govinfo.gov/content/pkg/FR-2016-04-11/pdf/2016-07716.pdf Administrative Practice and Procedure; Banks Banking; Federal Reserve System; Holding Companies; Liquidity; Reporting and Recordkeeping Requirements 11 p. 21223 21233 81 FR 21223 Title 12 Part 249 12 CFR Part 249 RIN 7100 AE32 Liquidity Coverage Ratio: Treatment of U.S. Municipal Securities as High-Quality Liquid Assets; Federal Register Vol. 81, Issue RULE 2016-07716 FEDERAL RESERVE SYSTEM 2016-07-01 Docket No. R-1514 Regulation WW 6210-01-P 2016-07716 Final rule.

The Board of Governors of the Federal Reserve System (Board) is adopting a final rule that amends the Board's liquidity coverage ratio rule and modified liquidity coverage ratio rule (together, LCR rule) to include certain U.S. municipal securities as high-quality liquid assets (HQLA). This final rule includes as level 2B liquid assets under the LCR rule general obligation securities of a public sector entity (i.e., securities backed by the full faith and credit of a U.S. state or municipality) that meet similar criteria as corporate debt securities that are included as level 2B liquid assets, subject to limitations that are intended to address the structure of the U.S. municipal securities market. The final rule applies to all Board- regulated institutions that are subject to the LCR rule: Bank holding companies, certain savings and loan holding companies, and state member banks that, in each case, have $250 billion or more in total consolidated assets or $10 billion or more in on-balance sheet foreign exposure; state member banks with $10 billion or more in total consolidated assets that are consolidated subsidiaries of bank holding companies described in the first instance; nonbank financial companies designated by the Financial Stability Oversight Council for Board supervision to which the Board has applied the LCR rule by separate rule or order; and bank holding companies and certain savings and loan holding companies, in each case with $50 billion or more in total consolidated assets, but that do not meet the thresholds described in the first through third instances, which are subject to the Board's modified liquidity coverage ratio rule.

Effective Date: July 1, 2016. Gwendolyn Collins, Assistant Director, (202) 912-4311, Peter Clifford, Manager, (202) 785-6057, Adam S. Trost, Senior Supervisory Financial Analyst, (202) 452-3814, or J. Kevin Littler, Senior Supervisory Financial Analyst, (202) 475-6677, Risk Policy, Division of Banking Supervision and Regulation; Benjamin W. McDonough, Special Counsel, (202) 452-2036, Dafina Stewart, Counsel, (202) 452-3876, or Adam Cohen, Counsel, (202) 912-4658, Legal Division, Board of Governors of the Federal Reserve System, 20th and C Streets, Washington, DC 20551. For the hearing impaired only, Telecommunication Device for the Deaf (TDD), (202) 263-4869. Administrative Practice and Procedure; Banks Banking; Federal Reserve System; Holding Companies; Liquidity; Reporting and Recordkeeping Requirements Liquidity Coverage Ratio: Treatment of U.S. Municipal Securities as High-Quality Liquid Assets , http://www.bis.org/publ/bcbs238.htm http://www.federalreserve.gov/bankinforeg/srletters/sr1215.htm http://www.federalreserve.gov/newsevents/reform_systemic.htm Vol. 81, no. 69 Office of the Federal Register, National Archives and Records Administration 2016-04-11 continuing daily deposited born digital 235 p. Table of Contents: AE 2.7: GS 4.107: AE 2.106: KF70.A2 https://www.govinfo.gov/app/details/FR-2016-04-11 P0b002ee18f27df58 0097-6326 0042-1219 0364-1406 769-004-00000-9 000582072 f:fr11ap16 https://www.govinfo.gov/app/details/FR-2016-04-11 https://www.govinfo.gov/content/pkg/FR-2016-04-11/pdf/FR-2016-04-11.pdf https://www.govinfo.gov/content/pkg/FR-2016-04-11/xml/FR-2016-04-11.xml fdlp 21223 21447 DGPO 2016-04-09 2024-06-02 FR-2016-04-11 machine generated eng FR FR-2016-04-11 81 69