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Agencies Propose Capital and Liquidity Requirements for FBOs

The Federal Reserve Board, FDIC, and the Office of the Comptroller of the Currency requested feedback on proposed new capital and liquidity requirements affecting the U.S. operations of foreign banking organizations ("FBOs").

The proposal would (i) impose capital and liquidity standards on FBOs that would be intended to align requirements on FBOs that were comparable to those imposed on U.S organizations of a similar risk profile. With respect to capital, the proposal would apply to U.S. intermediate holding companies with assets of over $100 billion and to their depository institution subsidiaries. With respect to liquidity, the proposal would apply the liquidity coverage ratio and net stable funding ratio requirements to FBOs with combined U.S. assets of over $100 billion.

Additionally, the proposal would modify one facet of the proposed requirements under the FRB's proposal regarding certain banking organizations (see related coverage).

Comments on the proposal must be submitted by June 21, 2019.

Primary Sources

  1. FRB
  2. FDIC and OCC: Notice of Proposed Rulemaking With Request for Public Comment - Proposed changes to applicability thresholds for regulatory capital requirements for certain U.S. subsidiaries of foreign banking organizations and application of liquidity

Tags

Body of Law
Banking Law
Jurisdiction
US - Federal
Organization
US Banking Regulators
Sub-Author
FDIC, Federal Reserve Board, Comptroller