Group of professionals discuss finance

Breaking news and expert analysis on legal and compliance issues

[Back To Home][Back To Archives]

From Banking and Finance Law Daily, January 30, 2015

Fed proposal will simplify reporting requirements for small bank holding companies

By Colleen M. Svelnis, J.D.

The Federal Reserve Board has issued a proposed rule that would raise the threshold for applicability under the Fed’s Small Bank Holding Company Policy Statement from $500 million to $1 billion and would expand the scope of the Policy Statement to include savings and loan holding companies that otherwise meet its requirements. The Fed also adopted an interim final rule exempting savings and loan holding companies that meet the qualitative requirements in the Policy Statement but have less than $500 million in total consolidated assets from the Fed’s regulatory capital requirements. Additionally, the Fed reduced reporting requirements for certain bank holding companies and savings and loan holding companies.

The change will enable smaller bank holding companies to be regulated under the Small Bank Holding Company Statement, which allows simplified reporting requirements and less stringent capital standards that reflect the traditional banking services that these smaller banks provide. Under this Statement, the Fed has proposed to eliminate quarterly consolidated financial reporting requirements for these institutions, and instead require parent-only financial statements.

The Fed will accept comments on both the proposed rule and the interim final rule through March 4, 2015.

Policy Statement. The Policy Statement facilitates the transfer of ownership of small community banks by allowing their holding companies to operate with higher levels of debt than would otherwise be permitted. Institutions subject to the Policy Statement are not subject to the Fed’s regulatory capital requirements. Bank holding companies with less than $500 million in total consolidated assets are not currently subject to the Policy Statement.

P.L. 113-250. The proposed rule and interim final rule would implement Public Law 113-250, enacting H.R. 3329 (See Banking and Finance Law Daily, Dec. 19, 2014).

MainStory: TopStory BankingOperations BankHolding FederalReserveSystem

Banking and Finance Law Daily

Introducing Wolters Kluwer Banking and Finance Law Daily — a daily reporting service created by attorneys, for attorneys — providing same-day coverage of breaking news, court decisions, legislation, and regulatory activity.


A complete daily report of the news that affects your world

  • View full summaries of federal and state court decisions.
  • Access full text of legislative and regulatory developments.
  • Customize your daily email by topic and/or jurisdiction.
  • Search archives for stories of interest.

Not just news — the right news

  • Get expert analysis written by subject matter specialists—created by attorneys for attorneys.
  • Track law firms and organizations in the headlines with our new “Who’s in the News” feature.
  • Promote your firm with our new reprint policy.

24/7 access for a 24/7 world

  • Forward information with special copyright permissions, encouraging collaboration between counsel and colleagues.
  • Save time with mobile apps for your BlackBerry, iPhone, iPad, Android, or Kindle.
  • Access all links from any mobile device without being prompted for user name and password.