The Federal Reserve Board and the Federal Deposit Insurance
Corporation1 have released two final rules to tailor the
application of enhanced prudential standards to large U.S. and
foreign banking organizations:
- A Board-only release that finalizes
the application of enhanced prudential standards (stress testing,
capital planning, liquidity stress testing, liquidity risk
management, single counterparty credit limits and overall risk
management) to U.S. bank holding companies, certain savings and
loan holding companies and FBOs; and
- A joint release tailoring the
application of capital and liquidity rules to these banking
organizations.
The Final Rules leave in place the core post-crisis regulatory
framework created by the Dodd-Frank Act, while creating tiered
thresholds that modify the stringency and applicability of the
regulations. Notwithstanding significant comments about how the
proposals could have been made more risk-sensitive, the Agencies
opted for
