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.
