US G-Sibs urged to release surplus liquidity to fight virus sell-off
Top banks have about $378 billion of extra HQLA that could be released
The Federal Reserve asked top lenders to use surplus high-quality liquid assets (HQLAs) to support the economy as it wrestles with the coronavirus crisis.
As of Q4 2019, the eight global systemically important banks (G-Sibs) in the US had $2.5 trillion of unweighted HQLA on average at the holding company level, of which around $378 billion could be released without causing them to dip below their aggregate liquidity coverage ratio (LCR).
This surplus HQLA ties up approximately $18.9 billion of
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