FRB Announces Quantitative Impact Study on the Effect of Its Revised Regulatory Capital Framework

The Board of Governors of the Federal Reserve System ("FRB") announced that it will begin a quantitative impact study ("QIS") of the potential effect of its revised regulatory capital framework on savings and loan holding companies and non-bank financial companies that are "substantially engaged" in insurance underwriting activity ("Insurance Holding Companies").

The FRB finalized its revised regulatory capital framework to implement Basel III capital rules for bank holding companies, certain savings and loan holding companies, and state member banks in July 2013, but excluded Insurance Holding Companies to allow the FRB more time in which to tailor capital rules for those firms.

The QIS is being conducted to provide the FRB with a better understanding of how to design for the Insurance Holding Companies a capital framework compliant with Dodd-Frank Section 171 and the Collins Amendment. The FRB has contacted Insurance Holding Companies to request their participation in the QIS and is asking for information to be submitted by December 31, 2014.

See: FRB Press Release.Related news: OCC and Federal Reserve Board Approve Final Capital Rules (July 2, 2013); FRB Issues Final Rule Changes in Order to Align with the Basel III Capital Framework (December 6, 2013).