§ 249.40. Liquidity coverage shortfall: Supervisory framework.
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/us/cfr/t12/s§ 249.40A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)Notification requirements. A Board-regulated institution must notify the Board on any business day when its liquidity coverage ratio is calculated to be less than the minimum requirement in § 249.10.
(b)Liquidity plan.
(1)For the period during which a Board-regulated institution must calculate a liquidity coverage ratio on the last business day of each applicable calendar month under subparts F or G of this part, if the Board-regulated institution's liquidity coverage ratio is below the minimum requirement in § 249.10 for any calculation date that is the last business day of the applicable calendar month, or if the Board has determined that the Board-regulated institution is otherwise materially noncompliant with the requirements of this part, the Board-regulated institution must promptly consult with the Board to determine whether the Board-regulated institution must provide to the Board a plan for achieving compliance with the minimum liquidity requirement in § 249.10 and all other requirements of this part.
(2)For the period during which a Board-regulated institution must calculate a liquidity coverage ratio each business day under subpart F of this part, if a Board-regulated institution's liquidity coverage ratio is below the minimum requirement in § 249.10 for three consecutive business days, or if the Board has determined that the Board-regulated institution is otherwise materially noncompliant with the requirements of this part, the Board-regulated institution must promptly provide to the Board a plan for achieving compliance with the minimum liquidity requirement in § 249.10 and all other requirements of this part.
(3)The plan must include, as applicable:
(i)An assessment of the Board-regulated institution's liquidity position;
(ii)The actions the Board-regulated institution has taken and will take to achieve full compliance with this part, including:
(A)A plan for adjusting the Board-regulated 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 Board 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 Board may, at its discretion, take additional supervisory or enforcement actions to address noncompliance with the minimum liquidity standard and other requirements of this part. [79 FR 61523, 61539, Oct. 10, 2014, as amended at 79 FR 61540, Oct. 10, 2014]
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§ 249.40
Liquidity coverage shortfall: Supervisory framework.
Fed. Reg.×1
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