News Release 2018-81 | August 22, 2018

Agencies Issue Interim Final Rule Regarding the Treatment of Certain Municipal Securities as High-Quality Liquid Assets

Joint Release

Board of Governors of the Federal Reserve System Federal Deposit Insurance Corporation Office of the Comptroller of the Currency

WASHINGTON—Three federal banking agencies today issued an interim final rule amending the agencies’ liquidity rules to treat certain eligible municipal securities as high-quality liquid assets, as required by the Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018 (EGRRCPA).

The EGRRCPA requires the agencies to treat a municipal obligation as a high-quality liquid asset (HQLA) under their liquidity coverage ratio rules if that obligation is considered “liquid and readily-marketable” and “investment grade.”

This interim final rule takes effect upon publication in the Federal Register and comments will be accepted for 30 days after the interim final rule’s publication in the Federal Register

Media Contacts

Federal Reserve Darren Gersh   (202) 452-2955
FDIC David Barr (202) 898-6992
OCC Bryan Hubbard (202) 649-6870

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