(a) A foreign banking organization subject
to this subpart with average total consolidated assets of $250 billion
or more must report to the Board on an annual basis the results of
an internal liquidity stress test for either the consolidated operations
of the foreign banking organization or the combined U.S. operations
of the foreign banking organization. Such liquidity stress test must
be conducted consistent with the Basel Committee principles for liquidity
risk management and must incorporate 30-day, 90-day, and one-year
stress-test horizons. The “Basel Committee principles for liquidity
risk management” means the document titled “Principles for Sound Liquidity
Risk Management and Supervision” (September 2008) as published by
the Basel Committee on Banking Supervision, as supplemented and revised
from time to time.
(b) A foreign banking organization that
does not comply with paragraph (a) of this section must limit the
net aggregate amount owed by the foreign banking organization’s non-U.S.
offices and its non-U.S. affiliates to the combined U.S. operations
to 25 percent or less of the third party liabilities of its combined
U.S. operations, on a daily basis.
