---
kind: "section"
citation: "12 C.F.R. § 249.40"
title: "12"
number: "249.40"
heading: "Liquidity coverage shortfall: Supervisory framework."
url: "https://uscodex.org/cfr/12/249.40"
---

# §249.40. Liquidity coverage shortfall: Supervisory framework.

- (a) **Notification requirements.** A Board-regulated institution must notify the Board on any business day when its liquidity coverage ratio is calculated to be less than the minimum requirement in [§ 249.10](/cfr/12/249.10.md).
- (b) **Liquidity plan.**
  - (1) For the period during which a Board-regulated institution must calculate a liquidity coverage ratio on the last business day of each applicable calendar month under subparts [F](/cfr/12/subpartF.md) or [G](/cfr/12/subpartG.md) of this part, if the Board-regulated institution's liquidity coverage ratio is below the minimum requirement in [§ 249.10](/cfr/12/249.10.md) for any calculation date that is the last business day of the applicable calendar month, or if the Board has determined that the Board-regulated institution is otherwise materially noncompliant with the requirements of this part, the Board-regulated institution must promptly consult with the Board to determine whether the Board-regulated institution must provide to the Board a plan for achieving compliance with the minimum liquidity requirement in [§ 249.10](/cfr/12/249.10.md) and all other requirements of this part.
  - (2) For the period during which a Board-regulated institution must calculate a liquidity coverage ratio each business day under [subpart F](/cfr/12/subpartF.md) of this part, if a Board-regulated institution's liquidity coverage ratio is below the minimum requirement in [§ 249.10](/cfr/12/249.10.md) for three consecutive business days, or if the Board has determined that the Board-regulated institution is otherwise materially noncompliant with the requirements of this part, the Board-regulated institution must promptly provide to the Board a plan for achieving compliance with the minimum liquidity requirement in [§ 249.10](/cfr/12/249.10.md) and all other requirements of this part.
  - (3) The plan must include, as applicable:
    - (i) An assessment of the Board-regulated institution's liquidity position;
    - (ii) The actions the Board-regulated institution has taken and will take to achieve full compliance with this part, including:
      - (A) A plan for adjusting the Board-regulated institution's risk profile, risk management, and funding sources in order to achieve full compliance with this part; and
      - (B) A plan for remediating any operational or management issues that contributed to noncompliance with this part;
    - (iii) An estimated time frame for achieving full compliance with this part; and
    - (iv) A commitment to report to the Board no less than weekly on progress to achieve compliance in accordance with the plan until full compliance with this part is achieved.
- (c) **Supervisory and enforcement actions.** The Board may, at its discretion, take additional supervisory or enforcement actions to address noncompliance with the minimum liquidity standard and other requirements of this part.

## Notes

### Amendments

[79 FR 61523, 61539, Oct. 10, 2014, as amended at 79 FR 61540, Oct. 10, 2014]

### Authority

Authority: 12 U.S.C. 248(a), 321-38a, 481-486, 1467a(g)(1), 1818, 1828, 1831p-1, 1831o-1, 1844(b), 5365, 5366, 5368; 12 U.S.C. 3101 et seq.

### Source

Source: 79 FR 61523, 61539, Oct. 10, 2014, unless otherwise noted.

### Amendments

[79 FR 61523, 61539, Oct. 10, 2014, as amended at 79 FR 61540, Oct. 10, 2014]