The Federal Reserve Board ("FRB") rule proposal tailoring the application of prudential standards to U.S. bank holding companies and applying enhanced standards to certain large savings and loan holding companies was published in the Federal Register. Comments on the rule proposal must be received by January 22, 2019.
As previously covered, the rule proposal would establish categories of prudential standards in order to align requirements with a firm's risk profile. The FRB-only proposal would tailor prudential standards regarding capital stress testing, risk management, liquidity risk management, liquidity stress testing, liquidity buffer requirements, and single-counterparty credit limits. In addition, the FRB-only proposal would apply enhanced prudential standards to certain large savings and loan holding companies. However, such standards would not apply to savings and loan holding companies that are predominantly engaged in insurance or commercial activities.
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