MNI TRANSCRIPT: Powell on LCR and Net Stable Funding Ratio

     WASHINGTON (MNI) - The following is the portion of a transcript from

Federal Reserve Chairman Jerome Powell's press conference after the FOMC meeting

Wednesday:

     Q: Another money market question. Banks have been pointing to liquidity

rules as having contributed to some of the volatility we've seen in markets and

potentially some capital rules as well. Are you all looking at whether tweaks to

the liquidity coverage ratio might help and what is the status of the funding

ratio, still planning on putting that out soon?

     A: You know... so... I think if we concluded that we needed to raise the

level of requirements for reserves for banks to meet the LCL, we'd probably

raise the level of reserves rather than lower the LCR. It's not impossible that

we'd come to a view that the LCR is calibrated too high, but that's not

something we think right now. On the other hand, it might be that more reserves

are needed, in which case, we're in a position to supply them. In terms of the

net stable funding ratio... I believe we put it up for comment and got comments

and I believe we're looking at, at finalizing that in the relatively near

future.

--MNI Washington Bureau; +1 202 371 2121; email: brooke.migdon@marketnews.com

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