FOR IMMEDIATE RELEASE
March 18, 2015
Contact: Bryan Hubbard
Comptroller of the Currency Issues Statement Regarding Bank Investment in the Municipal Securities Market
WASHINGTON – Comptroller of the Currency Thomas J. Curry today issued the following statement regarding investments in municipal securities made by national banks and federal savings associations:
The Office of the Comptroller of the Currency recognizes the importance of the $3.6 trillion municipal securities market as a source of infrastructure funding for states, cities, and localities in the United States. The agency considers bank investments in municipal securities a prudent activity when part of a safe and sound investment strategy. Banks historically have invested in municipal securities for a variety of purposes, including yield and community support. Bank ownership of municipal securities represents approximately 10 percent of all outstanding issuances as of mid-2014. Banks continue to be active participants in this market. In fact, since the interagency Liquidity Coverage Ratio Rule became final in October 2014 banks have increased their overall holdings of municipal securities, and the OCC will continue to monitor activity in the market. The OCC supports banks’ prudent investments in municipal securities.