Liquidity is the risk to a bank's earnings and capital arising from its inability to timely meet obligations when they come due without incurring unacceptable losses. Bank management must ensure that sufficient funds are available at a reasonable cost to meet potential demands from both funds providers and borrowers.
Liquidity (Comptroller's Handbook, June 2012)
- Liquidity Coverage Ratio: Interagency Frequently Asked Questions (OCC 2017-44, October 2017)
- Guidance on Identifying, Accepting, and Reporting Brokered Deposits (FDIC FIL 2-2015, January 2015)
Covers applicable definitions and provides an overview of unsafe and unsound banking practices.
- Liquidity Coverage Ratio: Final Rule (OCC 2014-51, October 2014)
- Federal Banking Regulators Finalize Liquidity Coverage Ratio (OCC 2014-120, September 2014)
- Liquidity: Final Interagency Policy Statement on Funding and Liquidity Risk Management (OCC 2010-13, March 2010)
The Final Policy Statement summarizes the principles of sound liquidity risk management.
- Liquidity Risk Management (OCC 2003-36, August 2003)
Provides an overview of Interagency Advisory on the Use of the Federal Reserve's Primary Credit Program in Effective Liquidity Management.
- International Framework for Liquidity Risk Measurement, Standards and Monitoring - Consultative Document (Bank for International Settlement, December 2009)
Proposals to strengthen global capital and liquidity regulations with the goal of promoting a more resilient banking sector, issued by the Basel Committee on Banking Supervision
- Principles for Sound Liquidity Risk Management and Supervision (Bank for International Settlement, September 2008)
Augmented guidance for supervisors that emphasizes the importance of assessing the adequacy of a bank's liquidity risk management framework and its level of liquidity, and suggests steps that supervisors should take if these are deemed inadequate.
- Interagency Policy on Banks/Thrifts Providing Financial Support to Funds Advised by the Banking Organization or Its Affiliates (OCC 2004-2, January 2004)
Covers issues and risks related to banks providing financial support to investment funds.
- Brokered Deposits (Code of the Federal Regulations 12 CFR 337.6)
Covers applicable definitions and provides an overview of unsafe and unsound banking practices. This link takes you to the Federal Register website.
Related News and Issuances
|08/16/2021||OCC 2021-38||Liquidity: Updated Comptroller's Handbook Booklet and Rescissions|
|11/03/2020||OCC 2020-96||Capital and Liquidity Treatment for Money Market Liquidity Facility and Paycheck Protection Program: Final Rule|
|09/29/2020||NR 2020-129||Agencies Issue Two Final Rules|