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Fed encourages banks to use capital and liquidity buffers

March 18, 2020

On March 15, the Federal Reserve issued a press release that, among other things, encouraged banks to use their capital and liquidity buffers to lend to households and businesses and announced that reserve requirement ratios will be reduced to 0% effective March 26.  The Federal Reserve, OCC, and FDIC issued a joint press release on March 17 with the same encouragement.