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The US Federal Reserve has eased the calculation of
supplementary leverage ratios (SLR) for the country's largest
banks for a year as a direct response to the Covid-19 crisis.
The move will ease capital and liquidity requirements for the
banks and allow them to replace treasuries with loans at the
corporate and commercial level.
The change will exclude US Treasury securities and deposits
at Federal Reserve banks from the calculation of the rule for
holding companies, and will be in effect until March 31
Fellow regulators, the Office of the Comptroller of the
Currency (OCC) and the Federal Deposit Insurance Corporation
(FDIC), are yet to follow suit. The rule is enforced by all
Priya Misra, global head of rates strategy at TD Securities,
said that the decision from the Fed is necessary in