New Quantitative Liquidity Requirements Proposed
The Federal Reserve recently issued a proposed rule that would establish, for the first time, a standardized quantitative minimum liquidity requirement for large, internationally active banking organizations, as well as for certain systemically important nonbank financial companies designated by the Financial Stability Oversight Council for Federal Reserve supervision. The liquidity proposal is based on a standard agreed to by the Basel Committee on Banking Supervision, but is more stringent in several respects than what is required under Basel III.