Fed approves rule requiring banks to publicly disclose liquid assets

EghtesadOnline: The Federal Reserve on Monday finalized a rule requiring big banks to disclose certain liquidity measures for the first time, as part of an effort to make sure they can cover large or rapid withdrawals.

News ID: ۷۷۲۴۴۲

19 December 2016

Notably, banks will have to post each quarter the ratio comparing their assets that can quickly be converted to cash to their expected cash outflows during a time of financial stress. They will also have to disclose the consolidated amounts of their high-quality liquid assets and their projected net cash outflow amounts over a 30-day stress period, according to Reuters.

Deadlines for banks to comply with the new requirement range from April 2017 through Oct. 18, the Fed said.