ICBA said it agrees with the Federal Housing Finance Agency's approach to proposed liquidity requirements for Fannie Mae and Freddie Mac.
Background: The FHFA's proposal follows an approach similar to the liquidity requirements for Systemically Important Financial Institutions, adhering to the Basel III construct with a mandated liquidity coverage ratio, liquidity buffers, and net stable funding ratio.
Comments: Citing the proposal's alignment with the FHFA's regulatory capital framework issued in November, ICBA said it supports robust GSE capital liquidity requirements that balance safety and soundness, taxpayer protection, housing market liquidity, current economic conditions. Read ICBA letter.