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Post by bot on Oct 24, 2013 17:42:09 GMT -5
Feds release bank liquidity rule proposal WASHINGTON (MarketWatch) -- The Federal Reserve, the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corp. have proposed a tighter deadline for major banks to comply with liquidity rules than international banks. They will need to have a liquidity coverage ratio of 80% by 2015 and 100% by 2017, a tougher deadline than the 60% in 2015 and full coverage by 2019 envisioned in Basel III. Also, Fannie Mae and Freddie Mac debt will get a 20% risk weighting, rather than the 0% for Treasurys. The rules will apply to those with $250 billion or more in assets or substantial international operations, and firms between $50 billion and $250 billion will be subject to a less stringent version. "The proposal before us today marks an important advance in prudential regulation because, for the first time, large banking organizations would be subject to a quantitative liquidity rule," said Fed Gov. Daniel Tarullo in a statement.
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