April 15, 2011
Federal Reserve seeks comments on outline of how it intends to apply certain parts of its current consolidated supervisory program for bank holding companies to savings and loan holding companies
For immediate release
The Federal Reserve Board is seeking comment on a notice that outlines how it intends to apply certain parts of its current consolidated supervisory program for bank holding companies to savings and loan holding companies (SLHCs) after assuming supervisory responsibility for SLHCs. Under the Dodd-Frank Wall Street Reform and Consumer Protection Act, supervisory and rule-writing authority for SLHCs and their non-depository subsidiaries will transfer from the Office of Thrift Supervision (OTS) to the Board on July 21, 2011.
The notice identifies three elements of the Board's current supervisory program that are particularly critical to the effective evaluation of the consolidated condition of holding companies:
- the consolidated supervision program for large and regional holding companies;
- the supervisory program for small, noncomplex holding companies; and
- the holding company rating system.
The notice discusses the Board's expectation that application of consolidated capital requirements to SLHCs will be addressed in the Basel III rulemaking process. The notice also states that the Board anticipates that it will assess SLHC capital using supervisory methods similar to those currently employed by the OTS until consolidated capital standards are finalized.
The Board requests comments on the notice, which will be published soon in the Federal Register, by May 23, 2011.
Federal Register notice: HTML | PDF (60 KB)