The final liquidity rule will be approved by
regulators, including the Federal Reserve, on Sept 3, the news
service reported the person as saying.
The most recent draft does not list debt issued by states and
municipalities as high-quality assets that could help sustain a
bank through a 30-day squeeze, the report said, citing the
The Public Affairs Office of the Federal Reserve could not be
reached out for comment outside of regular U.S. business hours.
The regulations could affect the municipal bond market by giving
banks less incentive to buy bonds that finance schools, roads
and public works, Bloomberg said.
(Reporting by Anjali Rao Koppala in Bangalore; Editing by Ken
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