OCC Bulletin 2017-44 | October 23, 2017

Liquidity Coverage Ratio: Interagency Frequently Asked Questions

To

Chief Executive Officers of All National Banks and Federal Savings Associations, Department and Division Heads, All Examining Personnel, and Other Interested Parties

Summary

The Office of the Comptroller of the Currency (OCC), along with the Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corporation (collectively, the agencies), are releasing answers to frequently asked questions (FAQ) regarding the liquidity coverage ratio (LCR) rule. These FAQs are the agencies' staffs' interpretations of the rule based on the facts and circumstances presented. These FAQs are not official rules or regulations. The OCC plans to compile additional FAQs related to the LCR rule, as needed, and will post updated FAQs on the OCC's LCR page.

Note for Community Banks

These FAQs and the LCR rule do not apply to community banks.

Highlights

These FAQs address the following topics:

Treatment of outflows from liquidity facilities to public sector entities in connection with variable rate demand note programs.
Treatment of outflows for trusts.
Determination of maturity for instruments with remote contingency call options.
Treatment of outflows for trust ledger deposit accounts and custody assets.
Treatment of multicurrency deposit balances.
Treatment of inflows from secured loans to retail clients with open maturities.
Treatment of eligible high-quality liquid assets and monetization in securities lending transactions.
Treatment of certain deposits required to be held at a foreign central bank as foreign withdrawable reserves.