Fed Issues Final Rule on Liquidity Reporting

The Federal Reserve today approved a final rule specifying how large banking organizations must make quarterly disclosures of their liquidity coverage ratios.

Under the rule, institutions subject to the LCR will be required to disclose their consolidated LCR calculations, based on averages over the prior quarter, and post them prominently on their websites. In addition to disclosing the amount of high-quality liquid assets, the rule requires financial institutions to disclose information about their projected net cash outflow. Companies would also be required to provide a discussion of their LCR results, factors behind them and significant changes.

The final rule extends the proposed implementation timeline by nine months, with compliance dates now ranging from April 2017 through October 2018. For more information, contact ABA’s Alison Touhey.