An FBO’s U.S. intermediate holding company must maintain a liquidity buffer in the United States based on the results of a 30-day liquidity stress test. The U.S. branches and agencies of an FBO must maintain a liquidity buffer in the United States equal to the liquidity needs for 14 days, as determined by an internal liquidity stress test.
In addition, the Board has indicated that it intends to apply the Basel III liquidity rules to large U.S. operations of FBOs. These requirements are comparable to local liquidity requirements imposed by the United Kingdom Prudential Regulation Authority, although the authority’s branch-level liquidity requirements are somewhat more flexible.