Saturday, July 07, 2018 10:35AM / US Fed
Federal Reserve Board Issues Statement Describing How, Consistent With Recently Enacted EGRRCPA, The Board Will No Longer Subject Primarily Smaller, Less Complex Banking Organizations To Certain Board Regulations
Consistent with the recently enacted Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA), the Federal Reserve Board on Friday issued a statement describing how the Board will no longer subject primarily smaller, less complex banking organizations to certain Board regulations, including those relating to stress testing and liquidity.
Upon enactment, EGRRCPA raised the threshold for Dodd-Frank enhanced prudential standards from $50 billion to $100 billion dollars in total consolidated assets for bank holding companies. This change did not require Board action to have an immediate effect, but did affect the application of several Board regulations. As a result, certain Board regulations are inconsistent with the new law. As described in the Board's statement, the Board will not take action to enforce certain regulations and reporting requirements for firms with less than $100 billion in total consolidated assets, such as rules implementing enhanced prudential standards and the liquidity coverage ratio requirements. The Board will continue to supervise the firms to ensure their safe and sound operation.
The Board's statement also provides guidance on the Board's implementation of other EGRRCPA changes, including those relating to assessments and high volatility commercial real estate exposures. The Board will take the positions described in the statement in the interim until the Board incorporates EGRRCPA's changes into its regulations.