Proposed Agency Information Collection Activities; Comment Request (FED proposes to extend – with revisions – the recordkeeping, reporting, and disclosure requirements of banks in connection with Regulation WW)

On December 5, 2023, the Board of Governors of the Federal Reserve System (FED) published in the Federal Register its proposal to extend for a period of three years – with revisions – the recordkeeping, reporting, and disclosure requirements of certain large state member banks, covered depository institution holding companies, and U.S. intermediate holding companies of foreign banking organizations in connection with the requirements stipulated in Regulation WW (12 CFR Part 249. Regulation WW implements certain Basel III standards by requiring covered institutions to meet liquidity coverage ratio (LCR) and net stable funding ratio (NSFR) requirements to ensure that banks have enough high-quality liquid assets (HQLA) to cover their short-term liquidity needs in times of financial stress (LCR) and have a stable funding profile over a longer time horizon relative to the liquidity of their assets and off-balance-sheet activities (NSFR). The current requirements primarily include the regular, frequent reporting of LCR and NSFR statistics and corresponding recordkeeping requirements (5 year retention period).
The revision would install previously omitted requirements as regards the creation, maintenance, and recordkeeping of policies and procedures to ensure that covered institutions‘ netting agreements are compliant with the regulation, that these institutions can monetize their HQLA on short notice, and that the compositions of their HQLA remain fit for purpose.
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Comments on the proposed revision and the extension may be submitted to the FED up to February 5, 2024.