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Joint Press Release
May 05, 2020

Federal bank regulatory agencies modify liquidity coverage ratio for
banks participating in Money Market Mutual Fund Liquidity Facility and
Paycheck Protection Program Liquidity Facility
Board of Governors of the Federal Reserve System
Federal Deposit Insurance Corporation
Office of the Comptroller of the Currency
For release at 3:30 p.m. EDT
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To support the flow of credit to households and businesses, the federal bank regulatory agencies today
announced an interim final rule that modifies the agencies' Liquidity Coverage Ratio (LCR) rule to support
banking organizations' participation in the Federal Reserve's Money Market Mutual Fund Liquidity Facility and
the Paycheck Protection Program Liquidity Facility.
In particular, the interim final rule facilitates participation in these facilities by neutralizing the LCR impact
associated with the non-recourse funding provided by these facilities. The rule does not otherwise alter the
LCR or its calibration.
The LCR rule requires large banks to hold a buffer of high-quality liquid assets so that they can meet their
short-term liquidity needs. The two facilities were established by the Federal Reserve to support the economy
in light of the disruptions caused by COVID-19.
The rule is effective immediately and comments will be accepted for 30 days after publication in the Federal
Register.

Federal Register notice: Liquidity Coverage Ratio Rule: Treatment of Certain Emergency Facilities
(PDF)

Media Contacts:
Federal Reserve Board
FDIC
OCC

Related Content
Board Votes

Eric Kollig
Julianne Fisher Breitbeil
Bryan Hubbard

202-452-2955
202-898-6895
202-649-6870

Money Market Mutual Fund Liquidity Facility
Paycheck Protection Program Liquidity Facility

Last Update: May 05, 2020