[20180110]IF10804_金融改革：市政债券和LCR.pdf

https:/crsreports.congress.gov January 10, 2018Financial Reform: Muni Bonds and the LCRThis In Focus reviews legislative proposals to require regulators to allow large banks to use municipal (muni) bonds to meet the requirements of the Liquidity Coverage Ratio (LCR). Municipal bonds are debt securities issued by state and local governments or public entities to finance government spending and public activities. Certain bank regulators do not allow them to be used to meet the LCR, which may act as a disincentive for large banks to hold them compared to eligible assets. Whether municipal bonds are liquid enough to qualify under the LCR is a contentious issue, with possible implications for financial stability and the ability of states and localities to raise funds. Liquidity Coverage Ratio Because of “liquidity mismatch” (e.g., banks fund long-term, illiquid loans with deposits that can be withdrawn on demand), banks are inherently prone to liquidity crisesa temporary loss of access to funding can cause an otherwise healthy bank to fail. In response to acute liquidity shortages and asset “fire sales” during the 2007-2009 financial crisis, the banking regulatorsthe Federal Reserve (F