Law 360

Banks have long tested their liquidity levels and had contingency plans in place, and the Fed has made liquidity a key part of its regular bank stress tests, said Mayra Rodriguez Valladares, the managing principal of consulting firm MRV Associates.

“The [liquidity coverage ratio] is an attempt to have you quantify your liquidity, and the idea of having a liquidity contingency plan, that’s been around for years,” she said.