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.