Fed’s New Rules Propose Large Banks Disclose Liquidity Profiles

The Federal Reserve proposed new rules on Tuesday which mandate that large banks disclose their consolidated liquidity coverage ratios and high-quality asset levels each quarter. The Fed seeks comments on the proposed rules by Feb. 2.

Large banks to disclose LCR quarterly

The Fed believes one of the key lessons of the recent financial crisis was that market participants did not have adequate access to information about the liquidity risk profiles of large banking firms. In an effort to enhance market transparency, the Fed wants the country’s largest banks to disclose the amount of high-quality liquid assets they hold and other key liquidity data on a quarterly basis.