SR 17-11:
Interagency Frequently Asked Questions on Implementation of the Liquidity Coverage Ratio (LCR) Rule
OF THE FEDERAL RESERVE SYSTEM
WASHINGTON, D.C. 20551
DIVISION OF
SUPERVISION AND REGULATION
October 23, 2017
Revised February 11, 2026
On February 10, 2026, the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation (collectively, the agencies) are rescinding the public FAQs with respect to the LCR rule but leaving the rescinded FAQs posted on their websites. The agencies anticipate seeking comment on the issues addressed in the FAQs, as well as on proposed regulatory changes, in the future. Neither the FAQs nor their rescission amend the requirements of the LCR rule. To the extent subject institutions have relied on these FAQs to confirm or clarify the rule requirements, they may continue to do so.
In addition, minor revisions were made to the contact information within the SR letter to direct questions to the Board's public site.
TO THE OFFICER IN CHARGE OF SUPERVISION AT EACH FEDERAL RESERVE BANK
Interagency Frequently Asked Questions on Implementation of the Liquidity Coverage Ratio (LCR) Rule
Applicability: This guidance applies to bank holding companies, savings and loan holding companies, and state member banks subject to the LCR or the modified LCR rules, as described below. The guidance does not apply to community banking organizations with $10 billion or less in consolidated assets.
The Federal Reserve, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency (collectively, the "agencies") are jointly issuing the attached Frequently Asked Questions ("FAQs") regarding implementation of the LCR and modified LCR rules.1 In the attached FAQs, the agencies provide interpretations based on the facts and circumstances described in each question. The purpose of the FAQs is to clarify certain aspects of the existing LCR and modified LCR rules for supervised institutions and supervisory staff based on questions that the agencies have received since the rules were published. As the agencies issue additional FAQs in response to questions received, the Federal Reserve will periodically update the FAQ document that is attached to this SR letter. These and any subsequent FAQs also will be maintained on the Board's public website.2
The LCR rule applies to bank holding companies, savings and loan holding companies without significant insurance or commercial operations, and state member banks with $250 billion or more in total assets or $10 billion or more in on-balance sheet foreign exposure and to these holding companies' subsidiary depository institutions that have total consolidated assets of $10 billion or more. The modified LCR rule applies to bank holding companies and savings and loan holding companies without significant insurance or commercial operations that, in each case, have $50 billion or more in total consolidated assets but do not meet the thresholds stated above to be covered by the LCR rule.3
Reserve Banks are asked to distribute this letter to institutions in their districts that are subject to the LCR or modified LCR rules, as well as to their supervisory staff. Questions regarding this letter may be sent via the Board's public website.4
signed by
Michael S. Gibson
Director
Division of
Supervision and Regulation
Notes:
- See "Liquidity Coverage Ratio: Liquidity Risk Measurement Standards," 79 Fed. Reg. 61440 (Oct. 10, 2014), codified at 12 CFR part 249. Return to text
- See https://www.federalreserve.gov/supervisionreg/topics/liquidity-coverage-ratio-faqs.htm. Return to text
- See 12 CFR part 249 subpart G. Return to text
- http://www.federalreserve.gov/apps/contactus/feedback.aspx Return to text