U.S. banking regulators tweak liquidity rule to accommodate emergency facilities

WASHINGTON (Reuters) - U.S. banking regulators announced Tuesday they had tweaked a bank liquidity requirement to ensure that banks were not dinged for participating in emergency Fed liquidity facilities established during the coronavirus pandemic.

The regulators said the change to the "liquidity coverage ratio" rule is aimed at neutralizing the impact of banks participating in the Federal Reserve's new Money Market Mutual Fund and Paycheck Protection Program Liquidity Facilities. It otherwise does not change the rule, which requires banks to hold high-quality liquid assets on their books.

(Reporting by Pete Schroeder; Editing by Andrea Ricci)

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