The agencies have issued a FAQ regarding the applicability of the liquidity coverage ratio (LCR) rule (12 CFR Part 329) in specific situations.
The LCR rule was adopted by the agencies in September 2014 and implements a quantitative liquidity requirement consistent with the standard established by the Basel Committee on Banking Supervision.
The FAQ document addresses:
- Outflow amounts for liquidity facilities to public sector entities in connection with variable rate demand note programs;
- Outflow amounts for trusts;
- Maturity determination for instruments with remote contingency call options;
- Outflow amounts for trust ledger deposit accounts and custody assets;
- Treatment of multicurrency deposit balances;
- Inflows from secured loans to retail clients with open maturities;
- Securities lending as a form of evidence of ability to monetize; and
- Treatment of foreign withdrawable reserves.
The full FAQ can be downloaded here:
and more information can be found here: