To facilitate banks’ participation in the Paycheck Protection Program Liquidity Facility and the Money Market Mutual Fund Liquidity Facility, the federal banking agencies issued an interim final rule today that will allow institutions to neutralize the effects of their participation for purposes of the liquidity coverage ratio.
The Federal Reserve today expanded access to its Paycheck Protection Program Liquidity Facility to nonbank lenders and expanded the range of collateral that can be pledged to the PPPLF.
With Congress poised to approve additional funding for the Small Business Administration’s Paycheck Protection Program as early as today, the Federal Housing Finance Agency confirmed today that Federal Home Loan Banks may accept PPP loans as collateral when making advances to their member banks.
In a letter to the Federal Reserve Board and the Treasury Department today, Senate Banking Chairman Mike Crapo (R-Idaho) raised a number of outstanding issues with recently announced initiatives to bolster the economy that are currently facing difficulties due to the coronavirus pandemic.
In its most sweeping move yet to prop up the U.S. economy amid the coronavirus pandemic and public health response, the Federal Reserve this morning unveiled several new facilities to support the flow of up to $300 billion in financing to households and businesses and committed to quantitative easing “in amounts needed” to support market functioning.
The FDIC today issued two sets of frequently asked questions addressing banker and consumer concerns related to the coronavirus pandemic.
To help ease the strain on U.S. dollar funding markets and facilitate the supply of credit to households and businesses, the Federal Reserve today established new temporary U.S. dollar swap lines with nine central banks around the globe.
As part of its policy response to the market turmoil triggered by the coronavirus pandemic, the Federal Reserve overnight announced a new Money Market Mutual Fund Liquidity Facility, or MMLF.
Noting that U.S. banking firms “have built up substantial levels of capital and liquidity in excess of regulatory minimums and buffers,” the Fed also encouraged banks to use their capital and liquidity buffers to lend to coronavirus-affected borrowers.
ABA today welcomed the Federal Reserve and FDIC’s effort to revisit the 41-year-old CAMELS uniform rating system and urged the agencies to make CAMELS ratings reflective of today’s regulatory requirements, to communicate ratings expectations in advance and to make the “M” or management component more transparent.