May 30, 2019

Agencies issue final rule regarding the treatment of certain municipal obligations as high-quality liquid assets

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

For release at 3:00 p.m. EDT

WASHINGTON—The federal bank regulatory agencies issued a final rule that will adopt without change the agencies' interim final rule issued in August 2018, amending their liquidity coverage ratio (LCR) rules to treat certain municipal obligations as high-quality liquid assets (HQLA).

The Economic Growth, Regulatory Relief, and Consumer Protection Act requires the agencies to treat a municipal obligation as HQLA under the LCR rule if that obligation is "liquid and readily-marketable" and "investment grade."

The final rule will be effective 30 days after publication in the Federal Register.

    Federal Register notice HTML

Media Contacts:
Federal Reserve
Eric Kollig
Julianne Fisher Breitbeil
Bryan Hubbard
Last Update: June 13, 2019