TCH Recommends Liquidity Monitoring Report Proposals Be Revised to Be More Consistent with the Liquidity Coverage Ratio

The Clearing House Association, in coordination with ABA, FSR, and IIB, filed a letter with the Federal Reserve on its proposed revisions to two important supervisory liquidity reports, the Complex Institution Liquidity Monitoring Report (FR 2052a) and the Liquidity Monitoring Report (FR 2052b). In the letter, the associations suggest a number of recommendations that would more closely conform these liquidity reports with the requirements of the Liquidity Coverage Ratio (LCR) and international standards.

The Associations believe that better aligning these liquidity reporting requirements with the LCR and international standards, as well as the publication of additional guidance regarding how these reports will be used for LCR compliance monitoring purposes, will solidify and strengthen the effectiveness of the liquidity framework.