Liquidity Coverage Ratio: A Quick Reference

The Liquidity Coverage Ratio (the "LCR" or the "rule") adopted by the Office of the Comptroller of the Currency (the "OCC"), the Board of Governors of the Federal Reserve System (the "Board") and the Federal Deposit Insurance Corporation (the "FDIC) (collectively, the "agencies") requires covered institutions to maintain a stock of high-quality liquid assets ("HQLAs") sufficient to satisfy their projected net cash outflows over a 30-day period as computed under the rule.

Over time, covered institutions will find that modifications to the structure and terms of their assets and liabilities, coupled with educated choices about which HQLAs they hold to cover the gap between calculated outflows and inflows, can both improve their ability to withstand liquidity pressures and minimize any adverse effects on revenues that may result from holding the necessary level of HQLAs. The following analysis of the LCR is designed to help covered institutions achieve compliance with