Regulatory AlertsSR 20-5: Questions and Answers on Statement Regarding the Use of Capital and Liquidity Buffers
The Federal Reserve Board and other federal banking agencies issued these questions and answers to address public inquiries regarding the use of capital and liquidity buffers. The document clarifies that agencies support banking organizations that choose to utilize these buffers to lend and undertake other supportive actions in a safe and sound manner. It further emphasizes the expectation that institutions will continue to manage their capital actions and liquidity risk prudently while applying the Board's total loss-absorbing capacity rule.
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