US regulators accept some munis as HQLA

WASHINGTON–Three federal banking agencies today issued an interim final rule amending the agencies’ liquidity rules to treat certain eligible municipal securities as high-quality liquid assets, as required by the Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018 (EGRRCPA).

The EGRRCPA requires the agencies to treat a municipal obligation as a high-quality liquid asset (HQLA) under their liquidity coverage ratio rules if that obligation is considered “liquid and readily-marketable” and “investment grade.”

This interim final rule takes effect upon publication in the Federal Register and comments will be accepted for 30 days after the interim final rule’s publication in the Federal Register.

See the release here: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20180822a.htm

Related Posts

Previous Post
Bloomberg: What Squeeze? Treasury Repo Suggests Shorts Are Not So Extreme
Next Post
Intelligent automation is the hedge against rise of big tech in finance

Related Posts

Fill out this field
Fill out this field
Please enter a valid email address.

Menu
X

Reset password

Create an account