Federal Reserve Liberalizes Policy Guidelines for Debt for Many Bank Holding Companies
Kentucky Banker Magazine › Nbr. 953, June 2006
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Summary
On March 30, 2006. the Federal Reserve Board ("Federal Reserve") amended its Small Bank Holding Company Policy Statement (Regulation Y. Appendix C) ("SBHC Policy") and provided an exemption for small bank holding companies from the consolidated risk-based and leverage capital adequacy guidelines (Regulation Y. Appendices A and D) ("Capital Guidelines") for eligible bank holding companies ("BHCs") with consolidated assets of less than $500 million. BHCs between $150,000 million and $499 million in consolidated assets are the principal beneficiaries of this revision to the SBHC Policy. Moreover, these changes are very significant for qualifying BHCs by clearly reducing regulatory burden while increasing the flexibility afforded those BHCs in a vast number of situations. The Federal Reserve's core and ongoing requirements for small BHCs operating under the SBHC Policy include the following: 1. leverage reduction, 2. capital adequacy, 3. dividend restrictions, and 4. minimimum down payment.
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Federal Reserve Liberalizes Policy Guidelines for Debt for Many Bank Holding Companies
On March 30, 2006. the Federal Reserve Board ("Federal Reserve") amended its Small Bank Holding Company Policy Statement (Regulation Y. Appendix C) ("SBHC Policy") and provided an exemption for small bank holding companies from the consolidated risk-based and leverage capita...
See the full content of this document
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