One particular liquidity requirement for large banking organizations is the LCR, which the U.S. federal banking agencies adopted in 2014.5 The LCR rule requires covered firms to hold sufficient high-quality liquid assets (HQLA)—in terms of both quantity and quality—to cover potential outflows over a 30-day period of liquidity stress.
Among other measures, the situation has led to various initiatives from the Bank recently, including the publication in May of a circular-letter with guidance on capital planning, designed to strengthen levels of own funds in all their forms (Core Tier 1, Tier 1 and total), above the minimum regulatory ratios in force, in order to create capital buffers that can withstand unforeseen events.