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News Release 2019-59 | May 30, 2019

Agencies Issue Final Rule Regarding the Treatment of Certain Municipal Obligations as High-Quality Liquid Assets

Joint Release

Board of Governors of the Federal Reserve System Federal Deposit Insurance Corporation Office of the Comptroller of the Currency

WASHINGTON—The federal bank regulatory agencies issued a final rule that will adopt without change the agencies’ interim final rule issued in August 2018, amending their liquidity coverage ratio (LCR) rules to treat certain eligible municipal obligations as high-quality liquid assets (HQLA).

The Economic Growth, Regulatory Relief, and Consumer Protection Act requires the agencies to treat a municipal obligation as HQLA under the LCR rule if that obligation is “liquid and readily-marketable” and “investment grade.”

The final rule will be effective 30 days after publication in the Federal Register.

Media Contacts

Federal Reserve Eric Kollig (202) 452-2955
FDIC Julianne Fisher Breitbeil (202) 898-6895
OCC Bryan Hubbard (202) 649-6870

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