The new rule would apply in full to banks with $250 billion or more in assets, and not at all to banks with less than $50 billion in assets. The group in between would be subject to a less stringent version of the rule.
The banks would hold the buffer of liquid assets, such as government bonds, to draw on to ensure they can meet withdrawals by depositors, post collateral due to credit rating downgrades and meet other needs.
The Fed proposed implementing the rules by January 2017, well before the 2019 deadline set by the Basel committee of global bank regulators.
Regulators have already proposed requiring U.S. banks to conduct regular liquidity stress tests to see how they would weather a crunch, Tarullo said.
The industry will have 90 days to submit comments on the proposals once the Fed formally propose the rules.
International regulators also are working on a longer-term liquidity standard, the so-called net stable funding ratio, which will also be implemented in America. That rule however has not yet been finalized by the Basel group.
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