80 FR 70671 - Regulatory Capital Rules; Enhanced Prudential Standards for Bank Holding Companies and Foreign Banking Organizations; Correction
FEDERAL RESERVE SYSTEM Federal Register Volume 80, Issue 220 (November 16, 2015)
Federal Register Volume 80, Issue 220 (November 16, 2015)
| Page Range | 70671-70673 | |
| FR Document | 2015-28294 |
[Federal Register Volume 80, Number 220 (Monday, November 16, 2015)] [Rules and Regulations] [Pages 70671-70673] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-28294] ======================================================================= ----------------------------------------------------------------------- FEDERAL RESERVE SYSTEM 12 CFR Parts 208, 217, 225, and 252 [Regulations H, Q, Y, and YY; Docket Nos. R-1442 and R-1492] RIN 7100 AE-87 Regulatory Capital Rules; Enhanced Prudential Standards for Bank Holding Companies and Foreign Banking Organizations; Correction AGENCY: Board of Governors of the Federal Reserve System. ACTION: Final rule; correcting amendment. ----------------------------------------------------------------------- SUMMARY: The Board of Governors of the Federal Reserve System (Board) published a final rule in the Federal Register on October 11, 2013 (78 FR 62018) regarding Regulatory Capital Rules and another final rule on October 27, 2014 (79 FR 64025) regarding Capital Plan and Stress Test Rules. This publication removes certain expired transitional requirements in Regulations H and Y, resolves certain citation errors, replaces a wrongly duplicated paragraph in Regulation Q, and corrects a typographical error in Regulation YY. DATES: The corrections are effective November 16, 2015, except that instructions 10.b and 10.f amending 12 CFR 208.43 are effective January 1, 2018. FOR FURTHER INFORMATION CONTACT: Benjamin McDonough, Special Counsel, (202) 452-2036, Julie Anthony, Counsel, (202) 475-6682, or Mark Buresh, Senior Attorney, (202) 452-5270, Legal Division, Board of Governors of the Federal Reserve System, 20th Street and Constitution Avenue NW., Washington, DC 20551. Telecommunications Device for the Deaf (TDD) users may contact (202) 263-4869. SUPPLEMENTARY INFORMATION: The Board is correcting errors in and deleting certain expired transitional requirements from the final rule that was published in the Federal Register on October 11, 2013 (78 FR 62018). These revisions will remove text or footnotes in 12 CFR parts 208 and 225 describing certain transitional requirements that have expired, correct citations in 12 CFR 217.2 and 12 CFR 217.202(b)(10), and remove and replace a wrongly duplicated paragraph in 12 CFR 217.300(c)(3). The Board is also correcting a typographical error in the final rule that was published in the Federal Register on October 27, 2014 (79 FR 64025), which caused the unintended deletion of Sec. 252.153(e)(2)-(5). List of Subjects 12 CFR Part 208 Accounting, Agriculture, Banks, Banking, Confidential business information, Consumer protection, Crime, Currency, Global systemically important bank, Insurance, Investments, Mortgages, Reporting and recordkeeping requirements, Securities. 12 CFR Part 217 Administrative practice and procedure, Banks, Banking, Holding companies, Reporting and recordkeeping requirements, Securities. 12 CFR Part 225 Administrative practice and procedure, Banks, banking, Federal Reserve System, Holding companies, Reporting and recordkeeping requirements, Securities. [[Page 70672]] 12 CFR Part 252 Administrative practice and procedure, Banks, Banking, Federal Reserve System, Holding companies, Nonbank financial companies supervised by the Board, Reporting and recordkeeping requirements, Securities, Stress testing. For the reasons set forth in the preamble, chapter II of title 12 of the Code of Federal Regulations is amended as follows: PART 208--MEMBERSHIP OF STATE BANKING INSTITUTIONS IN THE FEDERAL RESERVE SYSTEM 0 1. The authority citation for part 208 continues to read as follows: Authority: 12 U.S.C. 24, 36, 92a, 93a, 248(a), 248(c), 321-338a, 371d, 461, 481-486, 601, 611, 1814, 1816, 1818, 1820(d)(9), 1833(j), 1828(o), 1831, 1831o, 1831p-1, 1831r-1, 1831w, 1831x, 1835a, 1882, 2901-2907, 3105, 3310, 3331-3351, 3353, and 3905-3909; 15 U.S.C. 78b, 78l(b), 78l(i), 780-4(c)(5), 78q, 78q-1, 78w, 1681s, 1681w, 6801 and 6805; 31 U.S.C. 5318; 42 U.S.C. 4012a, 4104b, 4106, and 412 Sec. 208.2 [Amended] 0 2. In Sec. 208.2, remove footnote 2. Sec. 208.3 [Amended] 0 3. In Sec. 208.3, redesignate footnote 3 as footnote 2. Sec. 208.4 [Amended] 0 4. In Sec. 208.4, remove footnotes 4 and 5. Sec. 208.5 [Amended] 0 5. In Sec. 208.5, redesignate footnote 6 as footnote 3 and footnote 7 as footnote 4. Sec. 208.21 [Amended] 0 6. In Sec. 208.21, redesignate footnote 8 as footnote 5. Sec. 208.24 [Amended] 0 7. In Sec. 208.24, redesignate footnote 9 as footnote 6. 0 8. In Sec. 208.40, revise paragraph (e) to read as follows: Sec. 208.40 Authority, purpose, scope, other supervisory authority, and disclosure of capital categories. * * * * * (e) Timing. The calculation of the definitions of common equity tier 1 capital, the common equity tier 1 risk-based capital ratio, the leverage ratio, the supplementary leverage ratio, tangible equity, tier 1 capital, the tier 1 risk-based capital ratio, total assets, total leverage exposure, the total risk-based capital ratio, and total risk- weighted assets under this subpart is subject to the timing provisions at 12 CFR 217.1(f) and the transitions at 12 CFR part 217, subpart G. * * * * * Sec. 208.41 [Amended] 0 9. In Sec. 208.41, remove footnotes 10, 11, 12, 13, 14, and 15. 0 10. In Sec. 208.43: 0 a. Revise paragraph (a); 0 b. Effective January 1, 2018, paragraph (a)(2)(iv)(C) as added on May 1, 2014 (79 FR 24540), and further amended on August 14, 2015 (80 FR 49102), is redesignated as paragraph (a)(4)(iii). 0 c. Remove paragraph (b); 0 d. Redesignate paragraphs (c) and (d) as paragraphs (b) and (c). 0 e. Revise the introductory text of newly redesignated paragraph (b); and 0 f. Effective January 1, 2018, paragraph (c)(1)(iv) as revised on May 1, 2014 (79 FR 24540), and further amended on August 14, 2015 (80 FR 49102), is redesignated as paragraph (b)(1)(iv). The revisions read as follows: Sec. 208.43 Capital measures and capital category definitions. (a) Capital measures. For purposes of section 38 and this subpart, the relevant capital measures are: (1) Total Risk-Based Capital Measure: The total risk-based capital ratio; (2) Tier 1 Risk-Based Capital Measure: The tier 1 risk-based capital ratio; (3) Common Equity Tier 1 Capital Measure: The common equity tier 1 risk-based capital ratio; and (4) Leverage Measure: (i) The leverage ratio; and (ii) With respect to an advanced approaches bank, on January 1, 2018, and thereafter, the supplementary leverage ratio. * * * * * (b) Capital categories applicable to all member banks. For purposes of section 38 and this subpart, a member bank is deemed to be: * * * * * Sec. 208.102 [Amended] 0 11. In Sec. 208.102, redesignate footnote 16 as footnote 7. Sec. 208.111 [Amended] 0 12. In Sec. 208.111, redesignate footnote 17 as footnote 8 and footnote 18 as footnote 9. PART 217--CAPITAL ADEQUACY OF BANK HOLDING COMPANIES, SAVINGS AND LOAN HOLDING COMPANIES, AND STATE MEMBER BANKS (REGULATION Q) 0 13. The authority citation for part 217 continues to read as follows: Authority: 12 U.S.C. 248(a), 321-338a, 481-486, 1462a, 1467a, 1818, 1828, 1831n, 1831o, 1831p-l, 1831w, 1835, 1844(b), 1851, 3904, 3906-3909, 4808, 5365, 5368, 5371. 0 14. In Sec. 217.2, in the definition of ``covered savings and loan holding company'', revise paragraph (1) to read as follows: Sec. 217.2 Definitions * * * * * Covered savings and loan holding company * * * (1) A top-tier savings and loan holding company that is: (i) An institution that meets the requirements of section 10(c)(9)(C) of HOLA (12 U.S.C. 1467a(c)(9)(C)); and (ii) As of June 30 of the previous calendar year, derived 50 percent or more of its total consolidated assets or 50 percent of its total revenues on an enterprise-wide basis (as calculated under GAAP) from activities that are not financial in nature under section 4(k) of the Bank Holding Company Act of 1956 (12 U.S.C. 1843(k)); * * * * * Sec. 217.202 [Amended] 0 15. In Sec. 217.202(b), in paragraph (10)(ii) of the definition of ``securitization'', remove ``[12 CFR 208.34 (Board), 12 CFR 9.18 (OCC)]'' and add in its place ``12 CFR 208.34.'' 0 16. In Sec. 217.300, revise paragraph (c)(3) to read as follows: Sec. 217.300 Transitions. * * * * * (c) * * * (3) Depository institution holding companies under $15 billion and 2010 MHCs. (i) Non-qualifying capital instruments issued by depository institution holding companies under $15 billion and 2010 MHCs prior to May 19, 2010, may be included in additional tier 1 or tier 2 capital if the instrument was included in tier 1 or tier 2 capital, respectively, as of January 1, 2014. (ii) Non-qualifying capital instruments includable in tier 1 capital are subject to a limit of 25 percent of tier 1 capital elements, excluding any nonqualifying capital instruments and after applying all regulatory capital deductions and adjustments to tier 1 capital. (iii) Non-qualifying capital instruments that are not included in tier 1 as a result of the limitation in paragraph (c)(3)(ii) of this section are includable in tier 2 capital. * * * * * [[Page 70673]] PART 225--BANK HOLDING COMPANIES AND CHANGE IN BANK CONTROL (REGULATION Y) 0 17. The authority citation for part 225 continues to read as follows: Authority: 12 U.S.C. 1844(b), 3106 and 3108, 1817(j)(13), 1818(b), 1831i, 1972, 3310, 3331-3351 and 3353; 12 U.S.C. 3901, et seq.; and 12 U.S.C. 1841, et seq. Sec. 225.2 [Amended] 0 18. In Sec. 225.2(r)(1), remove footnotes 3 and 4. Sec. 225.4 [Amended] 0 19. In Sec. 225.4, remove footnote 1. Sec. 225.12 [Amended] 0 20. In Sec. 225.12: 0 a. Remove footnote 1; 0 b. Redesignate footnote 2 as footnote 1. Sec. 225.22 [Amended] 0 21. In Sec. 225.22, remove footnote 1. Sec. 225.172 [Amended] 0 22. In Sec. 225.172, remove footnote 1. PART 252--ENHANCED PRUDENTIAL STANDARDS (REGULATION YY) 0 23. The authority citation for part 252 continues to read as follows: Authority: 12 U.S.C. 321-338a, 1467a(g), 1818, 1831p-1, 1844(b), 1844(c), 5361, 5365, 5366. 0 24. In Sec. 252.153, add paragraphs (e)(2) through (5) to read as follows: Sec. 252.153 U.S. intermediate holding company requirement for foreign banking organizations with U.S. non-branch assets of $50 billion or more. * * * * * (e) * * * (2) Capital requirements for a U.S. intermediate holding company-- (i) Risk-based capital and leverage requirements. (A) A U.S. intermediate holding company must calculate and meet all applicable capital adequacy standards set forth in 12 CFR part 217, other than subpart E of 12 CFR part 217, and comply with all restrictions associated with applicable capital buffers, in the same manner as a bank holding company. (B) A U.S. intermediate holding company may choose to comply with subpart E of 12 CFR part 217. (C) Notwithstanding 12 CFR 217.100(b), if a bank holding company is a subsidiary of a foreign banking organization that is subject to this section and the bank holding company is subject to subpart E of 12 CFR part 217, the bank holding company, with the Board's prior written approval, may elect not to comply with subpart E of 12 CFR part 217. (ii) Capital planning. A U.S. intermediate holding company must comply with Sec. 225.8 of Regulation Y in the same manner as a bank holding company. (3) Risk management and risk committee requirements--(i) General. A U.S. intermediate holding company must establish and maintain a risk committee that approves and periodically reviews the risk management policies and oversees the risk-management framework of the U.S. intermediate holding company. The risk committee must be a committee of the board of directors of the U.S. intermediate holding company (or equivalent thereof). The risk committee may also serve as the U.S. risk committee for the combined U.S. operations required pursuant to Sec. 252.155(a). (ii) Risk-management framework. The U.S. intermediate holding company's risk-management framework must be commensurate with the structure, risk profile, complexity, activities, and size of the U.S. intermediate holding company and consistent with the risk management policies for the combined U.S. operations of the foreign banking organization. The framework must include: (A) Policies and procedures establishing risk-management governance, risk-management procedures, and risk-control infrastructure for the U.S. intermediate holding company; and (B) Processes and systems for implementing and monitoring compliance with such policies and procedures, including: (1) Processes and systems for identifying and reporting risks and risk-management deficiencies at the U.S. intermediate holding company, including regarding emerging risks and ensuring effective and timely implementation of actions to address emerging risks and risk-management deficiencies; (2) Processes and systems for establishing managerial and employee responsibility for risk management of the U.S. intermediate holding company; (3) Processes and systems for ensuring the independence of the risk-management function of the U.S. intermediate holding company; and (4) Processes and systems to integrate risk management and associated controls with management goals and the compensation structure of the U.S. intermediate holding company. (iii) Corporate governance requirements. The risk committee of the U.S. intermediate holding company must meet at least quarterly and otherwise as needed, and must fully document and maintain records of its proceedings, including risk-management decisions. (iv) Minimum member requirements. The risk committee must: (A) Include at least one member having experience in identifying, assessing, and managing risk exposures of large, complex financial firms; and (B) Have at least one member who: (1) Is not an officer or employee of the foreign banking organization or its affiliates and has not been an officer or employee of the foreign banking organization or its affiliates during the previous three years; and (2) Is not a member of the immediate family, as defined in Sec. 225.41(b)(3) of the Board's Regulation Y (12 CFR 225.41(b)(3)), of a person who is, or has been within the last three years, an executive officer, as defined in Sec. 215.2(e)(1) of the Board's Regulation O (12 CFR 215.2(e)(1)) of the foreign banking organization or its affiliates. (v) The U.S. intermediate holding company must take appropriate measures to ensure that it implements the risk management policies for the U.S. intermediate holding company and it provides sufficient information to the U.S. risk committee to enable the U.S. risk committee to carry out the responsibilities of this subpart. (4) Liquidity requirements. A U.S. intermediate holding company must comply with the liquidity risk-management requirements in Sec. 252.156 and conduct liquidity stress tests and hold a liquidity buffer pursuant to Sec. 252.157. (5) Stress test requirements. A U.S. intermediate holding company must comply with the requirements of subparts E and F of this part in the same manner as a bank holding company. * * * * * By order of the Board of Governors of the Federal Reserve System, November 2, 2015. Robert deV. Frierson, Secretary of the Board. [FR Doc. 2015-28294 Filed 11-13-15; 8:45 am] BILLING CODE 6210-01-P
![Federal Register / Vol. 80, No. 220 / Monday, November 16, 2015 / Rules and Regulations 70671
and informational impacts of this action 2015–16 fiscal period; (3) handlers are Capital Plan and Stress Test Rules. This
on small businesses. aware of this action which was publication removes certain expired
In accordance with the Paperwork recommended by the Committee at a transitional requirements in Regulations
Reduction Act of 1995 (44 U.S.C. public meeting and is similar to other H and Y, resolves certain citation errors,
Chapter 35), the order’s information assessment rate actions issued in past replaces a wrongly duplicated
collection requirements have been years; and (4) this interim rule provides paragraph in Regulation Q, and corrects
previously approved by the Office of a 60-day comment period, and all a typographical error in Regulation YY.
Management and Budget (OMB) and comments timely received will be
assigned OMB No. 0581–0189 Generic DATES: The corrections are effective
considered prior to finalization of this November 16, 2015, except that
Fruit Crops. No changes in those rule.
requirements are necessary as a result of instructions 10.b and 10.f amending 12
this action. Should any changes become List of Subjects in 7 CFR Part 906 CFR 208.43 are effective January 1,
necessary, they would be submitted to 2018.
Grapefruit, Marketing agreements,
OMB for approval. Oranges, Reporting and recordkeeping FOR FURTHER INFORMATION CONTACT:
This action imposes no additional requirements. Benjamin McDonough, Special Counsel,
reporting or recordkeeping requirements (202) 452–2036, Julie Anthony, Counsel,
For the reasons set forth in the
on either small or large Texas orange (202) 475–6682, or Mark Buresh, Senior
preamble, 7 CFR part 906 is amended as
and grapefruit handlers. As with all Attorney, (202) 452–5270, Legal
follows:
Federal marketing order programs, Division, Board of Governors of the
reports and forms are periodically PART 906—ORANGES AND Federal Reserve System, 20th Street and
reviewed to reduce information GRAPEFRUIT GROWN IN LOWER RIO Constitution Avenue NW., Washington,
requirements and duplication by GRANDE VALLEY IN TEXAS DC 20551. Telecommunications Device
industry and public sector agencies. for the Deaf (TDD) users may contact
AMS is committed to complying with ■ 1. The authority citation for 7 CFR (202) 263–4869.
the E-Government Act, to promote the part 906 continues to read as follows:
use of the internet and other SUPPLEMENTARY INFORMATION: The Board
Authority: 7 U.S.C. 601–674. is correcting errors in and deleting
information technologies to provide
increased opportunities for citizen ■ 2. Section 906.235 is revised to read certain expired transitional
access to Government information and as follows: requirements from the final rule that
services, and for other purposes. was published in the Federal Register
USDA has not identified any relevant § 906.235 Assessment rate. on October 11, 2013 (78 FR 62018).
Federal rules that duplicate, overlap, or On and after August, 1, 2015, an These revisions will remove text or
conflict with this rule. assessment rate of $0.08 per 7/10-bushel footnotes in 12 CFR parts 208 and 225
A small business guide on complying carton or equivalent is established for describing certain transitional
with fruit, vegetable, and specialty crop oranges and grapefruit grown in the requirements that have expired, correct
marketing agreements and orders may Lower Rio Grande Valley in Texas. citations in 12 CFR 217.2 and 12 CFR
be viewed at: http://www.ams.usda.gov/ Dated: November 9, 2015. 217.202(b)(10), and remove and replace
MarketingOrdersSmallBusinessGuide. Rex A. Barnes, a wrongly duplicated paragraph in 12
Any questions about the compliance Associate Administrator, Agricultural
CFR 217.300(c)(3). The Board is also
guide should be sent to Jeffrey Smutny Marketing Service. correcting a typographical error in the
at the previously mentioned address in [FR Doc. 2015–28913 Filed 11–13–15; 8:45 am]
final rule that was published in the
the FOR FURTHER INFORMATION CONTACT Federal Register on October 27, 2014
BILLING CODE P
section. (79 FR 64025), which caused the
After consideration of all relevant unintended deletion of § 252.153(e)(2)–
material presented, including the (5).
information and recommendation FEDERAL RESERVE SYSTEM
submitted by the Committee and other List of Subjects
available information, it is hereby found 12 CFR Parts 208, 217, 225, and 252
12 CFR Part 208
that this rule, as hereinafter set forth, [Regulations H, Q, Y, and YY; Docket Nos.
will tend to effectuate the declared R–1442 and R–1492] Accounting, Agriculture, Banks,
policy of the Act. Banking, Confidential business
Pursuant to 5 U.S.C. 553, it is also RIN 7100 AE–87 information, Consumer protection,
found and determined upon good cause Crime, Currency, Global systemically
Regulatory Capital Rules; Enhanced important bank, Insurance, Investments,
that it is impracticable, unnecessary,
Prudential Standards for Bank Holding Mortgages, Reporting and recordkeeping
and contrary to the public interest to
Companies and Foreign Banking requirements, Securities.
give preliminary notice prior to putting
Organizations; Correction
this rule into effect, and that good cause 12 CFR Part 217
exists for not postponing the effective AGENCY: Board of Governors of the
date of this rule until 30 days after Federal Reserve System. Administrative practice and
publication in the Federal Register ACTION: Final rule; correcting procedure, Banks, Banking, Holding
because: (1) The 2015–16 fiscal period amendment. companies, Reporting and
asabaliauskas on DSK5VPTVN1PROD with RULES
began on August, 1, 2015, and the recordkeeping requirements, Securities.
marketing order requires that the rate of SUMMARY: The Board of Governors of the 12 CFR Part 225
assessment for each fiscal period apply Federal Reserve System (Board)
to all assessable oranges and grapefruit published a final rule in the Federal Administrative practice and
handled during such fiscal period; (2) Register on October 11, 2013 (78 FR procedure, Banks, banking, Federal
this action decreases the assessment rate 62018) regarding Regulatory Capital Reserve System, Holding companies,
for assessable oranges and grapefruit Rules and another final rule on October Reporting and recordkeeping
grown in Texas beginning with the 27, 2014 (79 FR 64025) regarding requirements, Securities.
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12 CFR Part 252 and the transitions at 12 CFR part 217, 1831o, 1831p–l, 1831w, 1835, 1844(b), 1851,
subpart G. 3904, 3906–3909, 4808, 5365, 5368, 5371.
Administrative practice and
procedure, Banks, Banking, Federal * * * * *
■ 14. In § 217.2, in the definition of
Reserve System, Holding companies, § 208.41 [Amended] ‘‘covered savings and loan holding
Nonbank financial companies company’’, revise paragraph (1) to read
supervised by the Board, Reporting and ■ 9. In § 208.41, remove footnotes 10,
11, 12, 13, 14, and 15. as follows:
recordkeeping requirements, Securities,
■ 10. In § 208.43:
Stress testing. § 217.2 Definitions
■ a. Revise paragraph (a);
For the reasons set forth in the ■ b. Effective January 1, 2018, paragraph * * * * *
preamble, chapter II of title 12 of the (a)(2)(iv)(C) as added on May 1, 2014 (79 Covered savings and loan holding
Code of Federal Regulations is amended FR 24540), and further amended on
as follows: company * * *
August 14, 2015 (80 FR 49102), is
redesignated as paragraph (a)(4)(iii). (1) A top-tier savings and loan
PART 208—MEMBERSHIP OF STATE ■ c. Remove paragraph (b); holding company that is:
BANKING INSTITUTIONS IN THE ■ d. Redesignate paragraphs (c) and (d) (i) An institution that meets the
FEDERAL RESERVE SYSTEM as paragraphs (b) and (c). requirements of section 10(c)(9)(C) of
■ e. Revise the introductory text of HOLA (12 U.S.C. 1467a(c)(9)(C)); and
■ 1. The authority citation for part 208 newly redesignated paragraph (b); and
continues to read as follows: ■ f. Effective January 1, 2018, paragraph
(ii) As of June 30 of the previous
Authority: 12 U.S.C. 24, 36, 92a, 93a, (c)(1)(iv) as revised on May 1, 2014 (79 calendar year, derived 50 percent or
248(a), 248(c), 321–338a, 371d, 461, 481–486, FR 24540), and further amended on more of its total consolidated assets or
601, 611, 1814, 1816, 1818, 1820(d)(9), August 14, 2015 (80 FR 49102), is 50 percent of its total revenues on an
1833(j), 1828(o), 1831, 1831o, 1831p–1, redesignated as paragraph (b)(1)(iv). enterprise-wide basis (as calculated
1831r–1, 1831w, 1831x, 1835a, 1882, 2901– The revisions read as follows: under GAAP) from activities that are not
2907, 3105, 3310, 3331–3351, 3353, and financial in nature under section 4(k) of
3905–3909; 15 U.S.C. 78b, 78l(b), 78l(i), 780– § 208.43 Capital measures and capital the Bank Holding Company Act of 1956
4(c)(5), 78q, 78q–1, 78w, 1681s, 1681w, 6801 category definitions.
and 6805; 31 U.S.C. 5318; 42 U.S.C. 4012a, (12 U.S.C. 1843(k));
(a) Capital measures. For purposes of
4104b, 4106, and 412 * * * * *
section 38 and this subpart, the relevant
§ 208.2 [Amended] capital measures are: § 217.202 [Amended]
(1) Total Risk-Based Capital Measure:
■ 2. In § 208.2, remove footnote 2. The total risk-based capital ratio; ■ 15. In § 217.202(b), in paragraph
§ 208.3 [Amended] (2) Tier 1 Risk-Based Capital Measure: (10)(ii) of the definition of
The tier 1 risk-based capital ratio; ‘‘securitization’’, remove ‘‘[12 CFR
■ 3. In § 208.3, redesignate footnote 3 as (3) Common Equity Tier 1 Capital
footnote 2. 208.34 (Board), 12 CFR 9.18 (OCC)]’’
Measure: The common equity tier 1 risk- and add in its place ‘‘12 CFR 208.34.’’
§ 208.4 [Amended] based capital ratio; and
(4) Leverage Measure: ■ 16. In § 217.300, revise paragraph
■ 4. In § 208.4, remove footnotes 4 and (c)(3) to read as follows:
(i) The leverage ratio; and
5. (ii) With respect to an advanced
§ 217.300 Transitions.
§ 208.5 [Amended] approaches bank, on January 1, 2018,
and thereafter, the supplementary * * * * *
■ 5. In § 208.5, redesignate footnote 6 as
footnote 3 and footnote 7 as footnote 4. leverage ratio. (c) * * *
* * * * * (3) Depository institution holding
§ 208.21 [Amended] (b) Capital categories applicable to all companies under $15 billion and 2010
■ 6. In § 208.21, redesignate footnote 8 member banks. For purposes of section MHCs. (i) Non-qualifying capital
as footnote 5. 38 and this subpart, a member bank is instruments issued by depository
deemed to be: institution holding companies under
§ 208.24 [Amended]
* * * * * $15 billion and 2010 MHCs prior to May
■ 7. In § 208.24, redesignate footnote 9
§ 208.102 [Amended] 19, 2010, may be included in additional
as footnote 6.
tier 1 or tier 2 capital if the instrument
■ 8. In § 208.40, revise paragraph (e) to ■ 11. In § 208.102, redesignate footnote
read as follows: was included in tier 1 or tier 2 capital,
16 as footnote 7. respectively, as of January 1, 2014.
§ 208.40 Authority, purpose, scope, other § 208.111 [Amended] (ii) Non-qualifying capital
supervisory authority, and disclosure of instruments includable in tier 1 capital
■ 12. In § 208.111, redesignate footnote
capital categories.
17 as footnote 8 and footnote 18 as are subject to a limit of 25 percent of tier
* * * * * footnote 9. 1 capital elements, excluding any
(e) Timing. The calculation of the nonqualifying capital instruments and
definitions of common equity tier 1 PART 217—CAPITAL ADEQUACY OF after applying all regulatory capital
capital, the common equity tier 1 risk- BANK HOLDING COMPANIES, deductions and adjustments to tier 1
asabaliauskas on DSK5VPTVN1PROD with RULES
based capital ratio, the leverage ratio, SAVINGS AND LOAN HOLDING capital.
the supplementary leverage ratio, COMPANIES, AND STATE MEMBER
tangible equity, tier 1 capital, the tier 1 BANKS (REGULATION Q) (iii) Non-qualifying capital
risk-based capital ratio, total assets, total instruments that are not included in tier
leverage exposure, the total risk-based ■ 13. The authority citation for part 217 1 as a result of the limitation in
capital ratio, and total risk-weighted continues to read as follows: paragraph (c)(3)(ii) of this section are
assets under this subpart is subject to Authority: 12 U.S.C. 248(a), 321–338a, includable in tier 2 capital.
the timing provisions at 12 CFR 217.1(f) 481–486, 1462a, 1467a, 1818, 1828, 1831n, * * * * *
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PART 225—BANK HOLDING elect not to comply with subpart E of 12 U.S. intermediate holding company
COMPANIES AND CHANGE IN BANK CFR part 217. must meet at least quarterly and
CONTROL (REGULATION Y) (ii) Capital planning. A U.S. otherwise as needed, and must fully
intermediate holding company must document and maintain records of its
■ 17. The authority citation for part 225 comply with § 225.8 of Regulation Y in proceedings, including risk-
continues to read as follows: the same manner as a bank holding management decisions.
Authority: 12 U.S.C. 1844(b), 3106 and company.
(3) Risk management and risk (iv) Minimum member requirements.
3108, 1817(j)(13), 1818(b), 1831i, 1972, 3310,
3331–3351 and 3353; 12 U.S.C. 3901, et seq.; committee requirements—(i) General. A The risk committee must:
and 12 U.S.C. 1841, et seq. U.S. intermediate holding company (A) Include at least one member
must establish and maintain a risk having experience in identifying,
§ 225.2 [Amended] committee that approves and assessing, and managing risk exposures
■ 18. In § 225.2(r)(1), remove footnotes 3 periodically reviews the risk of large, complex financial firms; and
and 4. management policies and oversees the
(B) Have at least one member who:
§ 225.4 [Amended]
risk-management framework of the U.S.
intermediate holding company. The risk (1) Is not an officer or employee of the
■ 19. In § 225.4, remove footnote 1. committee must be a committee of the foreign banking organization or its
§ 225.12 [Amended] board of directors of the U.S. affiliates and has not been an officer or
intermediate holding company (or employee of the foreign banking
■ 20. In § 225.12:
equivalent thereof). The risk committee organization or its affiliates during the
■ a. Remove footnote 1;
■ b. Redesignate footnote 2 as footnote may also serve as the U.S. risk previous three years; and
1. committee for the combined U.S. (2) Is not a member of the immediate
operations required pursuant to family, as defined in § 225.41(b)(3) of
§ 225.22 [Amended] § 252.155(a). the Board’s Regulation Y (12 CFR
■ 21. In § 225.22, remove footnote 1. (ii) Risk-management framework. The
225.41(b)(3)), of a person who is, or has
U.S. intermediate holding company’s
§ 225.172 [Amended] risk-management framework must be been within the last three years, an
commensurate with the structure, risk executive officer, as defined in
■ 22. In § 225.172, remove footnote 1.
profile, complexity, activities, and size § 215.2(e)(1) of the Board’s Regulation O
PART 252—ENHANCED PRUDENTIAL of the U.S. intermediate holding (12 CFR 215.2(e)(1)) of the foreign
STANDARDS (REGULATION YY) company and consistent with the risk banking organization or its affiliates.
management policies for the combined (v) The U.S. intermediate holding
■ 23. The authority citation for part 252 U.S. operations of the foreign banking company must take appropriate
continues to read as follows: organization. The framework must measures to ensure that it implements
Authority: 12 U.S.C. 321–338a, 1467a(g), include: the risk management policies for the
1818, 1831p–1, 1844(b), 1844(c), 5361, 5365, (A) Policies and procedures U.S. intermediate holding company and
5366. establishing risk-management it provides sufficient information to the
■ 24. In § 252.153, add paragraphs (e)(2) governance, risk-management U.S. risk committee to enable the U.S.
through (5) to read as follows: procedures, and risk-control risk committee to carry out the
infrastructure for the U.S. intermediate responsibilities of this subpart.
§ 252.153 U.S. intermediate holding holding company; and
company requirement for foreign banking (B) Processes and systems for (4) Liquidity requirements. A U.S.
organizations with U.S. non-branch assets intermediate holding company must
of $50 billion or more.
implementing and monitoring
compliance with such policies and comply with the liquidity risk-
* * * * * procedures, including: management requirements in § 252.156
(e) * * * (1) Processes and systems for and conduct liquidity stress tests and
(2) Capital requirements for a U.S. identifying and reporting risks and risk- hold a liquidity buffer pursuant to
intermediate holding company—(i) management deficiencies at the U.S. § 252.157.
Risk-based capital and leverage intermediate holding company,
requirements. (A) A U.S. intermediate (5) Stress test requirements. A U.S.
including regarding emerging risks and
holding company must calculate and intermediate holding company must
ensuring effective and timely
meet all applicable capital adequacy implementation of actions to address comply with the requirements of
standards set forth in 12 CFR part 217, emerging risks and risk-management subparts E and F of this part in the same
other than subpart E of 12 CFR part 217, deficiencies; manner as a bank holding company.
and comply with all restrictions (2) Processes and systems for * * * * *
associated with applicable capital establishing managerial and employee
buffers, in the same manner as a bank By order of the Board of Governors of the
responsibility for risk management of Federal Reserve System, November 2, 2015.
holding company. the U.S. intermediate holding company;
(B) A U.S. intermediate holding (3) Processes and systems for ensuring Robert deV. Frierson,
company may choose to comply with the independence of the risk- Secretary of the Board.
subpart E of 12 CFR part 217. management function of the U.S. [FR Doc. 2015–28294 Filed 11–13–15; 8:45 am]
asabaliauskas on DSK5VPTVN1PROD with RULES
(C) Notwithstanding 12 CFR intermediate holding company; and BILLING CODE 6210–01–P
217.100(b), if a bank holding company (4) Processes and systems to integrate
is a subsidiary of a foreign banking risk management and associated
organization that is subject to this controls with management goals and the
section and the bank holding company compensation structure of the U.S.
is subject to subpart E of 12 CFR part intermediate holding company.
217, the bank holding company, with (iii) Corporate governance
the Board’s prior written approval, may requirements. The risk committee of the
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Document Created: 2015-12-14 14:12:46
Document Modified: 2015-12-14 14:12:46
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Rules and Regulations | |
| Action | Final rule; correcting amendment. | |
| Dates | The corrections are effective November 16, 2015, except that instructions 10.b and 10.f amending 12 CFR 208.43 are effective January 1, 2018. | |
| Contact | Benjamin McDonough, Special Counsel, (202) 452-2036, Julie Anthony, Counsel, (202) 475-6682, or Mark Buresh, Senior Attorney, (202) 452-5270, Legal Division, Board of Governors of the Federal Reserve System, 20th Street and Constitution Avenue NW., Washington, DC 20551. Telecommunications Device for the Deaf (TDD) users may contact (202) 263-4869. | |
| FR Citation | 80 FR 70671 | |
| RIN Number | 7100 AE87 | |
| CFR Citation | 12
CFR
208 12 CFR 217 12 CFR 225 12 CFR 252 | |
| CFR Associated | Accounting; Agriculture; Banks; Banking; Confidential Business Information; Consumer Protection; Crime; Currency; Global Systemically Important Bank; Insurance; Investments; Mortgages; Reporting and Recordkeeping Requirements; Securities; Administrative Practice and Procedure; Holding Companies; Banking; Federal Reserve System; Nonbank Financial Companies Supervised by the Board and Stress Testing |
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