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Financial Services

Federal Banking Agencies Release Two Final Rules

Adopted by the Federal Reserve Board, Federal Deposit Insurance Corporation (“FDIC”) and Office of the Comptroller of the Currency (“OCC”), two recently issued final rules will strengthen the liquidity positions of large financial institutions, improve the liquidity risk profile of international banking organizations, and enhance the measurement and management of liquidity risk. Issued on September 3rd, the final liquidity coverage ratio rule (LCR) implements a quantitative liquidity requirement consistent with the LCR established by the Basel Committee on Banking Supervision and with Section 165 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. For the second final rule, the definition of the denominator of the supplementary leverage ratio has been modified so it is consistent with recent changes agreed upon by the Basel Committee.

The October 2014 issue of Bank Auditing and Accounting Report looks more closely at these final rules, including adjustments made in response to comments submitted following the agencies’ publication of related proposals in November 2013 and April 2014.

For additional information on these final rules, please contact one of our Financial Services Group professionals.