FED – FED finalizes a rule that updates the Board’s capital planning requirements to be consistent with other Board rules that were recently modified


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January 19, 2021

FED finalizes a rule that updates the Board’s capital planning requirements to be consistent with other Board rules that were recently modified

For release at 11:00 a.m. EST

The FED on Tuesday finalized a rule that updates the Board’s capital planning requirements to be consistent with other Board rules that were recently modified. The final rule is generally similar to the proposal.

In 2019, the Board finalized a framework that sorts large banks into different categories based on their risks, with requirements that are tailored to the risks of each category. The Board’s capital planning requirements for these large banks help ensure they plan for & determine their capital needs under a range of different scenarios. The rule finalized today reflects that new framework. In particular, firms in the lowest risk category are on a two-year stress test cycle & not subject to company-run stress test requirements.

In a change from the proposal, the final rule applies capital planning requirements to large savings & loan holding companies that are not predominantly engaged in insurance or commercial activities.

Last Update:

January 19, 2021

Source: Federal Reserves

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