Banking Regulators Rescind Liquidity Coverage Ratio Guidance

The federal banking agencies rescinded 2017 public guidance on the Liquidity Coverage Ratio ("LCR") rule. They said they will seek public comment in the future on the issues addressed in the published FAQs, as well as on any proposed regulatory changes.

The Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation stated that the documents will remain posted on their respective websites for reference. The rescinded guidance addressed specific technical applications of the LCR rule, including the treatment of "liquidity facilities for public sector entities," outflow amounts for specific trust structures and Trust Ledger Deposit Account programs, and "maturity determination[s] for instruments with remote contingency call options."

The agencies noted that neither the original FAQs nor this rescission amend the existing requirements of the LCR rule. To the extent that subject institutions have relied on the FAQs to confirm or clarify rule requirements, the agencies stated that institutions may continue to do so.

The rescission is effective as of February 10, 2026.