Ask Reggi Your Question Now
Can you summarize 12 CFR Part 329?
REGULATIONS AND STATEMENTS OF GENERAL POLICY > LIQUIDITY RISK MEASUREMENT STANDARDS
Short Summary
The provided legal document content pertains to liquidity risk measurement standards for FDIC-supervised institutions. These standards establish a minimum liquidity standard and a minimum stable funding standard for certain FDIC-supervised institutions on a consolidated basis. The documents apply to FDIC-supervised institutions, including GSIB depository institutions, Category II FDIC-supervised institutions, and Category III FDIC-supervised institutions. The applicability may also extend to FDIC-supervised institutions based on factors such as asset size, level of complexity, risk profile, scope of operations, affiliation with foreign or domestic covered entities, or risk to the financial system. However, certain entities such as bridge financial companies or their subsidiaries, new depository institutions or bridge depository institutions, and insured branches are exempted from these standards. The documents provide guidelines for calculating and maintaining the liquidity coverage ratio, determining high-quality liquid assets, and measuring total net cash outflow amount for FDIC-supervised institutions. They also outline the notification requirements and obligations for FDIC-supervised institutions in the event of liquidity coverage ratio shortfall or noncompliance with the minimum net stable funding ratio. The FDIC reserves the authority to require greater amounts of high-quality liquid assets or stable funding, take supervisory or enforcement actions, and address unsafe or unsound practices, deficient liquidity levels, deficient stable funding levels, or violations of law. The documents do not mention any specific exemptions or penalties.
Whom does it apply to?
FDIC-supervised institutions, including GSIB depository institutions, Category II FDIC-supervised institutions, and Category III FDIC-supervised institutions
What does it govern?
Liquidity risk measurement standards
What are exemptions?
Bridge financial companies or their subsidiaries, new depository institutions or bridge depository institutions, insured branches
What are the Penalties?
No specific penalties mentioned
Jurisdiction
U.S. Federal Government