(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 section 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 section
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 section 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 section 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 section 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.
