The Federal Reserve Board has finalized a rule requiring large banking institutions to publicly disclose certain quantitative liquidity risk metrics.

The move is aimed at providing market participants and the public with reliable and timely information for evaluating the financial strength and resiliency of the big banking groups.

Under the Liquidity Coverage Ratio (LCR) rule adopted by the federal banking agencies in September 2014, large banking organizations–those with consolidated assets of $50 billion or more–and certain depository institution subsidiaries are required to hold a minimum amount of high-quality liquid assets (HQLA) that can be easily and quickly converted into cash.

The amount of HQLA held by each banking organization must be equal to or greater than its net cash outflows during a 30-day stress period. The ratio of the firm's HQLA to its net cash outflow is its LCR.

The newly adopted law mandates major banking institutions to disclose their consolidated LCRs each quarter based on averages over the prior quarter.

Also, they are now required to divulge their consolidated HQLA amounts, broken down by HQLA category. Additionally, banks are asked to share their projected net stressed cash outflow amounts, including retail inflows and retail deposit outflows, derivatives inflows and outflows, and several other measures.

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Deadlines for banking groups to comply with the new requirement range from April 2017 through October 2018, the Fed said.