Fed Finalizes Conforming Changes to Capital Plan Rule

The Federal Reserve today finalized a rule making changes to its capital planning requirements that apply to large bank holding companies and U.S. intermediate holding companies of foreign banking organizations. The changes conform the capital planning requirements with the 2019 tailored regulatory framework.

Specifically, the final rule makes 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. It also makes 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 final rule also applies the capital planning and stress capital buffer requirements to covered savings and loan holding companies subject to Category II, III and IV standards under the tailoring framework. The rule will take effect 60 days after publication in the Federal Register.