12 CFR § 329.40 - Liquidity coverage shortfall: Supervisory framework.

---
identifier: "/us/cfr/t12/s329.40"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "12 CFR § 329.40 - Liquidity coverage shortfall: Supervisory framework."
title_number: 12
title_name: "Banks and Banking"
section_number: "329.40"
section_name: "Liquidity coverage shortfall: Supervisory framework."
chapter_name: "FEDERAL DEPOSIT INSURANCE CORPORATION"
subchapter_number: "B"
subchapter_name: "REGULATIONS AND STATEMENTS OF GENERAL POLICY"
part_number: "329"
part_name: "LIQUIDITY RISK MEASUREMENT STANDARDS"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "12 U.S.C. 1815, 1816, 1818, 1819, 1828, 1831p-1, 5412."
regulatory_source: "79 FR 61523, Oct. 10, 2014, unless otherwise noted."
cfr_part: "329"
---


# 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.

(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 of this part, if the FDIC-supervised institution's liquidity coverage ratio is below the minimum requirement in § 329.10 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 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 of this part, if a FDIC-supervised institution's liquidity coverage ratio is below the minimum requirement in § 329.10 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 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.