Fed Proposes Conforming Changes to Capital Plan Rule

The Federal Reserve issued a proposal to make changes to its capital plan rule that applies to large bank holding companies and U.S. intermediate holding companies of foreign banking organizations. The changes would conform the capital planning requirements with the tailored regulatory framework that was finalized last year.

Specifically, the proposal would make conforming changes to the capital planning, regulatory reporting and stress capital buffer requirements for firms subject to Category IV standards under the tailored regulatory framework. The proposal would also make additional changes to the Fed’s stress testing rules, stress testing policy statement and regulatory reporting requirements related to business plan change assumptions, capital action assumptions and the publication of company-run stress test for savings and loan holding companies.

The Fed is also seeking comments on its guidance on capital planning for all firms. Comment on the proposal will be due Nov. 20.