Liquidity Coverage Ratio: Frequently Asked Questions
Summary:
The Federal Deposit Insurance Corporation (FDIC), the Board of Governors of the Federal Reserve System, and the Office of the Comptroller of the Currency (collectively, the agencies) are issuing the attached FAQ document to address questions received by the agencies 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.
Statement of Applicability to Institutions with Total Assets Under $1 Billion:
This Financial Institution Letter is not applicable to depository institutions with total assets of less than $1 billion. The LCR rule is applicable only to depository institutions with $10 billion or more in total consolidated assets that are consolidated subsidiaries of internationally active banking organizations.
Suggested Distribution:
FDIC-Supervised Banks (Commercial and Savings)
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