Bank Liquidity Requirements: Federal Reserve Board Proposes Public Disclosure Requirements for the Liquidity Coverage Ratio

Sullivan & Cromwell LLP - December 4, 2015

On November 24, 2015, the Board of Governors of the Federal Reserve System (the “Federal Reserve”) issued a notice of proposed rulemaking (the “Proposed Rule”) that would require bank holding companies subject to the liquidity coverage ratio (the “LCR”)—a Basel III-based 30-day liquidity metric—to publicly disclose quantitative and qualitative information regarding their respective LCR calculations on a quarterly basis.  Under the Proposed Rule, the quantitative components of the LCR would be disclosed using a standardized template, to “promote market discipline by providing investors and other stakeholders with comparable information,” accompanied by a qualitative discussion of the LCR calculation results.