§ 329.40. Liquidity coverage shortfall: Supervisory framework.
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/us/cfr/t12/s§ 329.40·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)Notification requirements. An FDIC-supervised institution must notify the FDIC on any business day when its liquidity coverage ratio is calculated to be less than the minimum requirement in § 329.10.
(b)Liquidity plan.
(1)For the period during which an FDIC-supervised institution must calculate a liquidity coverage ratio on the last business day of each applicable calendar month under subpart F of this part, if the FDIC-supervised institution's liquidity coverage ratio is below the minimum requirement in § 329.10 for any calculation date that is the last business day of the applicable calendar month, or if the FDIC has determined that the FDIC-supervised institution is otherwise materially noncompliant with the requirements of this part, the FDIC-supervised institution must promptly consult with the FDIC to determine whether the FDIC-supervised institution must provide to the FDIC a plan for achieving compliance with the minimum liquidity requirement in § 329.10 and all other requirements of this part.
(2)For the period during which an FDIC-supervised institution must calculate a liquidity coverage ratio each business day under subpart F of this part, if a FDIC-supervised institution's liquidity coverage ratio is below the minimum requirement in § 329.10 for three consecutive business days, or if the FDIC has determined that the FDIC-supervised institution is otherwise materially noncompliant with the requirements of this part, the FDIC-supervised institution must promptly provide to the FDIC a plan for achieving compliance with the minimum liquidity requirement in § 329.10 and all other requirements of this part.
(3)The plan must include, as applicable:
(i)An assessment of the FDIC-supervised institution's liquidity position;
(ii)The actions the FDIC-supervised institution has taken and will take to achieve full compliance with this part, including:
(A)A plan for adjusting the FDIC-supervised institution's risk profile, risk management, and funding sources in order to achieve full compliance with this part; and
(B)A plan for remediating any operational or management issues that contributed to noncompliance with this part;
(iii)An estimated time frame for achieving full compliance with this part; and
(iv)A commitment to report to the FDIC no less than weekly on progress to achieve compliance in accordance with the plan until full compliance with this part is achieved.
(c)Supervisory and enforcement actions. The FDIC may, at its discretion, take additional supervisory or enforcement actions to address noncompliance with the minimum liquidity standard and other requirements of this part.
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§ 329.40
Liquidity coverage shortfall: Supervisory framework.
Fed. Reg.×3
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