Fed plans 3-year extension for revised complex institution monitoring report to reflect LCR rule change

A report that provides the Federal Reserve monitoring information on certain bank holding companies (BHCs), savings and loan holding companies (SLHCs), and foreign banking organizations (FBOs) with U.S. assets would be extended for three years as revised in September under a notice for comment published Friday. Comments are due Feb. 26.

The FR 2052a is filed by U.S. BHCs and SLHCs that are subject to the Fed’s liquidity coverage ratio (LCR) rule as a “covered depository institution holding company,” with total consolidated assets of $50 billion or more; and certain foreign banking organizations with combined U.S. assets of $50 billion or more. The Fed in September temporarily approved certain revisions to the FR 2052a to reflect LCR rule changes required by the Economic, Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA). EGRRCPA gave the Fed 90 days to revise the LCR rule to treat investment grade municipal obligations that are liquid and readily marketable as level 2B HQLA (high quality liquid assets). The Fed temporarily revised the asset categories in the FR 2052a to comport with that change and now proposes to extend the FR 2052a revisions for three years.

The notice for comment was in Friday’s Federal Register.

Notice; request for comment