As currently constituted, the LCR may have the unintended effect of exacerbating a period of stress by forcing liquidity hoarding. The Basel Committee will likely suggest a set of changes to the LCR later this year, with a goal of introducing the LCR in 2015. Work on the NSFR is on a considerably slower track; the current plan is for implementation in 2018.
Enhanced prudential standards for the largest financial firms Sections 165 and 166 of the Dodd-Frank Act require the Federal Reserve to establish a broad set of enhanced prudential standards, both for bank holding companies with total consolidated assets of $ billion or more and for nonbank financial companies designated by the Financial Stability Oversight Council (Council).