12 CFR 50.110 – NSFR shortfall: Supervisory framework
(a) Notification requirements. A national bank or Federal savings association must notify the OCC no later than 10 business days, or such other period as the OCC may otherwise require by written notice, following the date that any event has occurred that would cause or has caused the national bank’s or Federal savings association’s net stable funding ratio to be less than 1.0 as required under § 50.100.
Terms Used In 12 CFR 50.110
- National Bank: A bank that is subject to the supervision of the Comptroller of the Currency. The Office of the Comptroller of the Currency is a bureau of the U.S. Treasury Department. A national bank can be recognized because it must have "national" or "national association" in its name. Source: OCC
(b) Liquidity Plan. (1) A national bank or Federal savings association must within 10 business days, or such other period as the OCC may otherwise require by written notice, provide to the OCC a plan for achieving a net stable funding ratio equal to or greater than 1.0 as required under § 50.100 if:
(i) The national bank or Federal savings association has or should have provided notice, pursuant to § 50.110(a), that the national bank’s or Federal savings association’s net stable funding ratio is, or will become, less than 1.0 as required under § 50.100;
(ii) The national bank’s or Federal savings association’s reports or disclosures to the OCC indicate that the national bank’s or Federal savings association’s net stable funding ratio is less than 1.0 as required under § 50.100; or
(iii) The OCC notifies the national bank or Federal savings association in writing that a plan is required and provides a reason for requiring such a plan.
(2) The plan must include, as applicable:
(i) An assessment of the national bank’s or Federal savings association’s liquidity profile;
(ii) The actions the national bank or Federal savings association has taken and will take to achieve a net stable funding ratio equal to or greater than 1.0 as required under § 50.100, including:
(A) A plan for adjusting the national bank’s or Federal savings association’s liquidity profile;
(B) A plan for remediating any operational or management issues that contributed to noncompliance with subpart K of this part; and
(iii) An estimated time frame for achieving full compliance with § 50.100.
(3) The national bank or Federal savings association must report to the OCC at least monthly, or such other frequency as required by the OCC, on progress to achieve full compliance with § 50.100.
(c) Supervisory and enforcement actions. The OCC may, at its discretion, take additional supervisory or enforcement actions to address noncompliance with the minimum net stable funding ratio and other requirements of subparts K through N of this part (see also § 50.2(c)).