Comments deadline for FRB interim final rule expanding reach of its small BHC statement

The Federal Reserve Board announced Tuesday it has issued an interim final rule expanding the applicability of the Board's small bank holding company policy statement (Regulation Y, Appendix C), as required by the Economic Growth, Regulatory Relief, and Consumer Protections Act of 2018 (EGRRCPA).

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 normally be permitted. While holding companies that meet the conditions of the policy statement are excluded from consolidated capital requirements, their depository institutions continue to be subject to minimum capital requirements. The interim final rule raises the statement's asset threshold from $1 billion to $3 billion in total consolidated assets. The statement also applies to savings and loan holding companies with less than $3 billion in total consolidated assets.

The interim final rule takes effect upon publication in the Federal Register and comments will be accepted for 60 days after publication.

UPDATE: This rule is scheduled for publication on August 30, 2018. It will be effective on publication. The 60-day comment period will end on Monday, October 29.