On September 19, 2008, the Board of Governors of the Federal
Reserve System adopted the Asset-Backed Commercial Paper Money Market
Mutual Fund Liquidity Facility (the ``AMLF'' or ``ABCP Lending
Facility'') which enables depository institutions and bank holding
companies to borrow from the Federal Reserve Bank of Boston on a non-
recourse basis if they use the proceeds of the loan to purchase certain
asset-backed commercial paper (ABCP) from money market mutual funds.
The purpose of this action was to reduce strains being experienced by
money market mutual funds. To facilitate national bank participation in
the program, the Office of the Comptroller of the Currency (OCC)
adopted on September 19, 2008, on an interim final basis, an exemption
from its risk-based capital guidelines for ABCP held by a national bank
as a result of its participation in this program.
The AMLF was set to expire on January 30, 2009. However, to
encourage the stability of money market mutual funds, the program has
been extended to October 30, 2009. This rule finalizes the risk-based
capital exemption and extends the risk-based capital exemption to ABCP
purchased beyond the original January 30, 2009, date. This final rule
applies the risk-based capital exemption to any ABCP purchased as a
result of a national bank's participation in the facility. The risk-
based capital exemption will continue to apply if the AMLF is extended
beyond October 30, 2009.
Risk-Based Capital Guidelines Money Market Mutual Funds
Details Information
Comments
Related Documents
More