HQLA savings may hit $52bn for big three US regionals
US Bancorp could slash HQLAs by $24 billion if ratio is set at 70% for Category IIIs
The three largest US regional banks could cut their minimum high-quality liquid asset (HQLA) requirements by as much as $52 billion if a Federal Reserve proposal to tailor regulatory requirements more closely to firms’ risks is adopted.
In the October 31 proposal, the Fed recommended a lightweight application of the liquidity coverage ratio (LCR) for banks with between $250 billion and $700 billion of assets that also have less than $75 billion in weighted short-term wholesale funding.
The
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