The largest US banks have a $100bn shortfall to make up in order to meet new liquidity rules designed to avert a future crisis, the Federal Reserve has warned.
On Wednesday, US regulators finalised details of the liquidity coverage ratio, which will require banks to hold a certain amount of assets that can be quickly turned into cash – to provide protection in the event of a future credit crunch.
If the ratio were applied now, banks subject to the new measures would have to hold a total of about $2.5tn in high-quality liquid assets over a 30-day stress period, Fed officials said – which is $100bn more than they currently have. Assets considered to be of requisite quality include Fed reserves and Treasury securities.