National Banks Notified of Proposed Funding and Liquidity Guidance

This story appeared in Bank Digest.

The Office of the Comptroller of the Currency has notified national banks that the federal banking regulatory agencies are seeking comment on the proposed “Interagency Guidance on Funding and Liquidity Risk Management.” The agencies developed the guidance to provide consistent expectations on sound practices for managing funding liquidity risk and to strengthen liquidity risk management practices. This guidance, when appropriate, brings the agencies' liquidity risk principles into conformance with the international guidance recently issued by the Basel Committee on Banking Supervision titled “Principles for Sound Liquidity Risk Management and Supervision.” Comments on the proposal are due on or before Sept. 4, 2009.