---
kind: "section"
citation: "12 C.F.R. § 329.40"
title: "12"
number: "329.40"
heading: "Liquidity coverage shortfall: Supervisory framework."
url: "https://uscodex.org/cfr/12/329.40"
---

# §329.40. Liquidity coverage shortfall: Supervisory framework.

- (a) **Notification requirements.** An FDIC-supervised institution must notify the FDIC on any business day when its liquidity coverage ratio is calculated to be less than the minimum requirement in [§ 329.10](/cfr/12/329.10.md).
- (b) **Liquidity plan.**
  - (1) For the period during which an FDIC-supervised institution must calculate a liquidity coverage ratio on the last business day of each applicable calendar month under [subpart F](/cfr/12/subpartF.md) of this part, if the FDIC-supervised institution's liquidity coverage ratio is below the minimum requirement in [§ 329.10](/cfr/12/329.10.md) for any calculation date that is the last business day of the applicable calendar month, or if the FDIC has determined that the FDIC-supervised institution is otherwise materially noncompliant with the requirements of this part, the FDIC-supervised institution must promptly consult with the FDIC to determine whether the FDIC-supervised institution must provide to the FDIC a plan for achieving compliance with the minimum liquidity requirement in [§ 329.10](/cfr/12/329.10.md) and all other requirements of this part.
  - (2) For the period during which an FDIC-supervised institution must calculate a liquidity coverage ratio each business day under [subpart F](/cfr/12/subpartF.md) of this part, if a FDIC-supervised institution's liquidity coverage ratio is below the minimum requirement in [§ 329.10](/cfr/12/329.10.md) for three consecutive business days, or if the FDIC has determined that the FDIC-supervised institution is otherwise materially noncompliant with the requirements of this part, the FDIC-supervised institution must promptly provide to the FDIC a plan for achieving compliance with the minimum liquidity requirement in [§ 329.10](/cfr/12/329.10.md) and all other requirements of this part.
  - (3) The plan must include, as applicable:
    - (i) An assessment of the FDIC-supervised institution's liquidity position;
    - (ii) The actions the FDIC-supervised institution has taken and will take to achieve full compliance with this part, including:
      - (A) A plan for adjusting the FDIC-supervised 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 FDIC 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 FDIC 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

### Authority

Authority: 12 U.S.C. 1815, 1816, 1818, 1819, 1828, 1831p-1, 5412.

### Source

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