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Fed approves rule requiring banks to publicly disclose liquid assets
December 19, 2016 / 8:24 PM / a year ago

Fed approves rule requiring banks to publicly disclose liquid assets

WASHINGTON (Reuters) - The Federal Reserve on Monday finalized a rule requiring big banks to disclose certain liquidity measures for the first time, as part of an effort to make sure they can cover large or rapid withdrawals.

A police officer keeps watch in front of the U.S. Federal Reserve building in Washington, DC, U.S. on October 12, 2016. REUTERS/Kevin Lamarque/File Photo

Notably, banks will have to post each quarter the ratio comparing their assets that can quickly be converted to cash to their expected cash outflows during a time of financial stress. They will also have to disclose the consolidated amounts of their high-quality liquid assets and their projected net cash outflow amounts over a 30-day stress period.

Deadlines for banks to comply with the new requirement range from April 2017 through Oct. 18, the Fed said.

Reporting by Lisa Lambert; Editing by Meredith Mazzilli

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