Liquidity Coverage Ratio Rule: Treatment of Certain Municipal Obligations as High-Quality Liquid Assets
other · OCC · Rule · Published 2018-08-31 · Effective 2018-08-31 · 83 FR 44451
Document
Document number
2018-18610
Federal Register citation
83 FR 44451
CFR reference
12 CFR 50
Type
Rule
Action
Interim final rule with request for comment.
Category
other
Sub-agency
OCC
Publication date
2018-08-31
Effective date
2018-08-31
Treasury docket
Docket ID OCC-2018-0013
Abstract
The OCC, the Board, and the FDIC (collectively, the agencies) are jointly issuing and inviting comment on an interim final rule that amends the agencies' liquidity coverage ratio (LCR) rule to treat liquid and readily-marketable, investment grade municipal obligations as high-quality liquid assets (HQLA). Section 403 of the Economic Growth, Regulatory Relief, and Consumer Protection Act amends section 18 of the Federal Deposit Insurance Act and requires the agencies, for purposes of their LCR rule and any other regulation that incorporates a definition of the term "high-quality liquid asset" or another substantially similar term, to treat a municipal obligation as HQLA (that is a level 2B liquid asset) if that obligation is, as of the LCR calculation date, "liquid and readily-marketable" and "investment grade."