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1 Vol. 79 Friday, No. 197 October 10, 2014 Part III Department of the Treasury Office of the Comptroller of the Currency 12 CFR Part 50 Federal Reserve System 12 CFR Part 249 Federal Deposit Insurance Corporation 12 CFR Part 329 Liquidity Coverage Ratio: Liquidity Risk Measurement Standards; Final Rule VerDate Sep<11>2014 18:03 Oct 09, 2014 Jkt 235001 PO 00000 Frm 00001 Fmt 4717 Sfmt 4717 E:\FR\FM\ 10 OCR2mstockstill on DSK4 VPTVN1 PROD with RULES261440 Federal Register/ Vol. 79, No. 197 / Friday, October 10, 2014 / Rules and Regulations Department OF THE Treasury Office of the Comptroller of the Currency 12 CFR Part 50 [Docket ID OCC 2013 0016] RIN 1557 AD74 Federal Reserve System 12 CFR Part 249 [Regulation WW; Docket No. R 1466] RIN 7100 AE03 Federal DEPOSIT INSURANCE CORPORATION 12 CFR Part 329 RIN 3064 AE04 Liquidity Coverage Ratio: Liquidity Risk Measurement Standards AGENCY: Office of the Comptroller of the Currency, Department of the Treasury ; Board of Governors of the Federal Reserve System ; and Federal Deposit Insurance Corporation.

2 ACTION: Final rule. SUMMARY: The Office of the Comptroller of the Currency (OCC), the Board of Governors of the Federal Reserve System (Board), and the Federal Deposit Insurance Corporation (FDIC) are adopting a final rule that implements a quantitative liquidity requirement consistent with the liquidity coverage ratio standard established by the Basel Committee on Banking Supervision (BCBS). The requirement is designed to promote the short-term resilience of the liquidity risk profile of large and internationally active banking organizations, thereby improving the banking sector s ability to absorb shocks arising from financial and economic stress, and to further improve the measurement and management of liquidity risk. The final rule establishes a quantitative minimum liquidity coverage ratio that requires a company subject to the rule to maintain an amount of high-quality liquid assets (the numerator of the ratio) that is no less than 100 percent of its total net cash outflows over a prospective 30 calendar- day period (the denominator of the ratio).

3 The final rule applies to large and internationally active banking organizations, generally, bank holding companies, certain savings and loan holding companies, and depository institutions with $250 billion or more in total assets or $10 billion or more in on- balance sheet foreign exposure and to their consolidated subsidiaries that are depository institutions with $10 billion or more in total consolidated assets. The final rule focuses on these financial institutions because of their complexity, funding profiles, and potential risk to the financial System . Therefore, the agencies do not intend to apply the final rule to community banks. In addition, the Board is separately adopting a modified minimum liquidity coverage ratio requirement for bank holding companies and savings and loan holding companies without significant insurance or commercial operations that, in each case, have $50 billion or more in total consolidated assets but that are not internationally active.

4 The final rule is effective January 1, 2015, with transition periods for compliance with the requirements of the rule. DATES: Effective Date: January 1, 2015. Comments must be submitted on the Paperwork Reduction Act burden estimates only by December 9, 2014. ADDRESSES: You may submit comments on the Paperwork Reduction Act burden estimates only. Comments should be directed to: OCC: Because paper mail in the Washington, DC area and at the OCC is subject to delay, commenters are encouraged to submit comments by email if possible. Comments may be sent to: Legislative and Regulatory Activities Division, Office of the Comptroller of the Currency, Attention: 1557 0323, 400 7th Street SW., Suite 3E 218, Mail Stop 9W 11, Washington, DC 20219. In addition, comments may be sent by fax to (571) 465 4326 or by electronic mail to You may personally inspect and photocopy comments at the OCC, 400 7th Street SW.

5 , Washington, DC 20219. For security reasons, the OCC requires that visitors make an appointment to inspect comments. You may do so by calling (202) 649 6700. Upon arrival, visitors will be required to present valid government-issued photo identification and to submit to security screening in order to inspect and photocopy comments. For further information or to obtain a copy of the collection please contact Johnny Vilela or Mary H. Gottlieb, OCC Clearance Officers, (202) 649 5490, for persons who are hard of hearing, TTY, (202) 649 5597, Legislative and Regulatory Activities Division, Office of the Comptroller of the Currency, 400 7th Street SW., Suite 3E 218, Mail Stop 9W 11, Washington, DC 20219. Board: You may submit comments, identified by Docket R 1466, by any of the following methods: Agency Web site: Follow the instructions for submitting comments at Federal eRulemaking Portal: http:// Follow the instructions for submitting comments.

6 E-Mail: Fax: (202) 452 3819 or (202) 452 3102. Mail: Robert deV. Frierson, Secretary, Board of Governors of the Federal Reserve System , 20th Street and Constitution Avenue NW., Washington, DC 20551. All public comments are available from the Board s Web site at as submitted, unless modified for technical reasons. Accordingly, your comments will not be edited to remove any identifying or contact information. Public comments may also be viewed electronically or in paper form in Room MP 500 of the Board s Martin Building (20th and C Street NW.) between 9:00 and 5:00 on weekdays. A copy of the PRA OMB submission, including any reporting forms and instructions, supporting statement, and other documentation will be placed into OMB s public docket files, once approved. Also, these documents may be requested from the agency clearance officer, whose name appears below. For further information contact the Federal Reserve Board Acting Clearance Officer, John Schmidt, Office of the Chief Data Officer, Board of Governors of the Federal Reserve System , Washington, DC 20551, (202) 452 3829.

7 Telecommunications Device for the Deaf (TDD) users may contact (202) 263 4869, Board of Governors of the Federal Reserve System , Washington, DC 20551. FDIC: You may submit written comments by any of the following methods: Agency Web site: Follow the instructions for submitting comments on the FDIC Web site. Federal eRulemaking Portal: http:// Follow the instructions for submitting comments. E-Mail: Include Liquidity Coverage Ratio Final Rule on the subject line of the message. Mail: Gary A. Kuiper, Counsel, Executive Secretary Section, NYA 5046, Attention: Comments, FDIC, 550 17th Street NW., Washington, DC 20429. Hand Delivery/Courier: The guard station at the rear of the 550 17th Street Building (located on F Street) on VerDate Sep<11>2014 18:03 Oct 09, 2014 Jkt 235001 PO 00000 Frm 00002 Fmt 4701 Sfmt 4700 E:\FR\FM\ 10 OCR2mstockstill on DSK4 VPTVN1 PROD with RULES261441 Federal Register/ Vol.

8 79, No. 197 / Friday, October 10, 2014 / Rules and Regulations 1 The BCBS is a committee of banking supervisory authorities that was established by the central bank governors of the G10 countries in 1975. It currently consists of senior representatives of bank supervisory authorities and central banks from Argentina, Australia, Belgium, Brazil, Canada, China, France, Germany, Hong Kong SAR, India, Indonesia, Italy, Japan, Korea, Luxembourg, Mexico, the Netherlands, Russia, Saudi Arabia, Singapore, South Africa, Sweden, Switzerland, Turkey, the United Kingdom, and the United States. The OCC, Board, and FDIC actively participate in BCBS and its international efforts. Documents issued by the BCBS are available through the Bank for International Settlements Web site at 278 FR 71818 (November 29, 2013). 3 BCBS, Basel III: International framework for liquidity risk measurement, standards and monitoring (December 2010), available at (Basel III Liquidity Framework).

9 4 BCBS, Basel III: The Liquidity Coverage Ratio and liquidity risk monitoring tools (January 2013), available at business days between 7:00 and 5:00 Public Inspection: All comments received will be posted without change to Federal / including any personal information provided. For further information or to request a copy of the collection please contact Gary Kuiper, Counsel, (202) 898 3719, Legal Division, Federal Deposit Insurance Corporation, 550 17th Street NW., Washington, DC 20429. FOR FURTHER INFORMATION CONTACT: OCC: Kerri Corn, Director, (202) 649 6398, or James Weinberger, Technical Expert, (202) 649 5213, Credit and Market Risk Division; Linda M. Jennings, National Bank Examiner, (980) 387 0619; Patrick T. Tierney, Assistant Director, or Tiffany Eng, Attorney, Legislative and Regulatory Activities Division, (202) 649 5490, for persons who are deaf or hard of hearing, TTY, (202) 649 5597; or Tena Alexander, Senior Counsel, or David Stankiewicz, Senior Attorney, Securities and Corporate Practices Division, (202) 649 5510; Office of the Comptroller of the Currency, 400 7th Street SW.

10 , Washington, DC 20219. Board: Constance Horsley, Assistant Director, (202) 452 5239, David Emmel, Manager, (202) 912 4612, Adam S. Trost, Senior Supervisory Financial Analyst, (202) 452 3814, or J. Kevin Littler, Senior Supervisory Financial Analyst, (202) 475 6677, Credit, Market and Liquidity Risk Policy, Division of Banking Supervision and Regulation; April C. Snyder, Senior Counsel, (202) 452 3099, Dafina Stewart, Senior Attorney, (202) 452 3876, Jahad Atieh, Attorney, (202) 452 3900, Legal Division, Board of Governors of the Federal Reserve System , 20th and C Streets NW., Washington, DC 20551. For the hearing impaired only, Telecommunication Device for the Deaf (TDD), (202) 263 4869. FDIC: Kyle Hadley, Chief, Examination Support Section, (202) 898 6532; Eric Schatten, Capital Markets Policy Analyst, (202) 898 7063, Capital Markets Branch Division of Risk Management Supervision, (202) 898 6888; Gregory Feder, Counsel, (202) 898 8724, or Suzanne Dawley, Senior Attorney, (202) 898 6509, Supervision Branch, Legal Division, Federal Deposit Insurance Corporation, 550 17th Street NW.