Finance & markets · 11/04/2016

Liquidity Coverage Ratio: Treatment of U.S. Municipal Securities as High-Quality Liquid Assets

The Federal Reserve Board is adopting a final rule that includes U.S. municipal securities as high-quality liquid assets, subject to certain limitations, for institutions with $250 billion or more in total consolidated assets or $10 billion or more in on-balance sheet foreign exposure. This change aims to address the structure of the U.S. municipal securities market.