Fed announces temporary change to supplementary leverage ratio rule

This story appeared in Bank Digest.

To ease strains in the Treasury market resulting from the coronavirus and increase banking organizations' ability to provide credit to households and businesses, the Fed is implementing a temporary change to its supplementary leverage ratio rule. According to the Fed's press release, the change would exclude U.S. Treasury securities and deposits at Federal Reserve Banks from the calculation of the rule for holding companies and will be in effect until March 31, 2021.

The change is effective immediately, and the public comment period will be 45 days.