Through an interim final rule, the Federal Reserve Board ("FRB") raised the consolidated asset threshold for bank holding companies seeking relief under the small bank holding company policy statement (the "policy statement") from $1 billion to $3 billion. The policy statement facilitates the transfer of ownership of community banks by allowing their holding companies to operate with higher levels of debt. The interim rule will become effective upon publication in the Federal Register.
The FRB released the interim rule to comply with the Economic Growth, Regulatory Relief and Consumer Protection Act of 2018, which directed the FRB to raise the consolidated asset threshold. In addition, the FRB will amend Regulation Q and Regulation Y to reflect the new threshold. According to the FRB, the interim rule will benefit small savings and loan holding companies, as well as small bank holding companies.
Comments on the interim rule must be submitted within 60 days of publication in the Federal Register.
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