This story appeared in Bank Digest.
The Federal Deposit Insurance Corporation, Federal Reserve Board, and Office of the Comptroller of the Currency have issued an interim final rule providing temporary changes to their supplementary leverage ratio rule. According to the agencies’ joint release, the temporary modifications will provide flexibility to certain depository institutions to expand their balance sheets in order to provide credit to households and businesses in light of the challenges arising from the coronavirus response.
Specifically, the interim final rule permits depository institutions to choose to exclude U.S. Treasury securities and deposits at Federal Reserve Banks from the calculation of the supplementary leverage ratio. The rule is effective upon publication in the Federal Register and will be in effect through March 31, 2021. Comments on the rule will be accepted for 45 days after its publication in the Federal Register.