Continuing actions to neutralize key rules, federal banking agencies have temporarily revised the liquidity coverage ratio (LCR) to exempt most assets and liabilities created in the course of supporting the money market mutual fund liquidity facility (MMLF) and PPP Liquidity Facility (PPPLF). The need to neutralize so many core post-crisis prudential standards may lead to broader questions about the U.S. prudential framework, but in the near term it gives considerably more latitude for banks to support Fed market-rescue facilities.
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