An interim final rule to amend the liquidity coverage ratio ("LCR") rule to treat liquid and readily marketable, investment-grade municipal obligations as high-quality liquid assets ("HQLA") was published in the Federal Register. The interim final rule was promulgated by the Office of the Comptroller of the Currency, the Federal Reserve Board and the FDIC (collectively, the "agencies").
As previously covered, the agencies issued the interim rule to comply with the Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018, which requires agencies to treat municipal obligations meeting certain standards as HQLA for the purpose of calculating the LCR.
The interim final rule will be effective on August 31, 2018. Comments on the interim final rule must be received by October 1, 2018.
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