News
March 4, 2014

Federal Reserve Board Enhances Prudential Supervision of US and Non-US Banks

Summary: The Federal Reserve Board recently adopted substantial portions of Regulation YY, “Enhanced Prudential Standards,” subjecting US bank holding companies, US savings and loan holding companies and foreign banking organizations to a graduated series of requirements. These new standards—which impose a range of stress testing, risk management, and capital and liquidity requirements that were previously left to the home country regulators in the case of foreign banking organizations—suggests a continuation of the shift (applicable to both US and non-US institutions) toward regulation from the perspective of systemic risk, potential insolvency and tighter compliance standards and, to some extent, away from regulation from the perspective of permissible activities.

Subscribe
Subscribe Link

Email Disclaimer